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Penske Automotive Group

PAG Consumer Cyclical Unknown Updated July 31, 2026
$217.32
52W $140.12 – $227.00
53/100
$14.29B
16.0
0.86
AI Committee Verdict
Watch
Conviction: Contested · 43% agreement · 7 analysts
-24.5%
Contested

Is PAG Bullish or Bearish?

Mixed. Innellis AI committee rates Penske Automotive Group (PAG) Watch with a composite score of 53/100 , based on 7 analysts with 43% agreement. Last updated July 31, 2026.

What Would Change This View

Upgrade to Buy
Requires a committee score of 60.0 — +6.51 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Reduce
Requires the score to fall below 40.0 — -13.49 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. News Analyst sees a compelling case — news sentiment is positive (+0.20 across 39 articles, 14d). Risk Analyst remains cautious — current ratio of 0.99 is tight -- limited short-term liquidity cushion. This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • ROE of 16.4% shows genuine earnings power backing the valuation — Value
  • Dividend yield of 2.6% pays you to wait — Value
  • Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
  • Price structure making higher highs and higher lows — Technical
  • MACD histogram positive -- bullish momentum — Technical
  • Trend and market structure agree -- coherent bullish picture — Technical
Bear Case
  • EPS declining -1.1% YoY despite any revenue growth — Growth
  • RSI at 74 is in overbought territory — Technical
  • Weekly RSI at 84 -- overbought on the larger timeframe too — Technical
  • Current ratio of 0.99 is tight -- limited short-term liquidity cushion — Risk
  • Bollinger bandwidth of 28.3% signals elevated volatility — Risk
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of July 31, 2026
Overall Committee Score
53/100
Agreement
43%
Analysts
7
Conviction
Contested
Sector Rank
Top 46%
of 124 Consumer Cyclical peers
Value Analyst bullish
63 / 100 · Moderate confidence
Classic value case: cheap on multiples with earnings power to back it up
+ ROE of 16.4% shows genuine earnings power backing the valuation
Growth Analyst neutral
48 / 100 · High confidence
Moderate growth -- present but not remarkable
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
− EPS declining -1.1% YoY despite any revenue growth
Technical Analyst bullish
61 / 100 · High confidence
Price action is constructive -- trend and momentum agree
+ Price structure making higher highs and higher lows
− RSI at 74 is in overbought territory
Risk Analyst bearish
35 / 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Current ratio of 0.99 is tight -- limited short-term liquidity cushion
Macro Analyst neutral
58 / 100 · Moderate confidence
Macro backdrop is mixed or neutral -- not a strong tailwind or headwind either way
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst bullish
64 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.20 across 39 articles, 14d)
Portfolio Manager neutral
45 / 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2744.14)
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Investment Thesis Evolution

Committee score moved marginally from 54.6 to 53.5.

Analyst-level changes:
  • Macro Analyst: stance bullish->neutral; score 65->58 (-8); +1 bullish signal(s).
  • News Analyst: +1 bullish signal(s).
  • Portfolio Manager: +2 bearish signal(s).
  • Risk Analyst: +1 bearish signal(s).
  • Technical Analyst: +2 bearish signal(s).
  • Value Analyst: +1 bullish signal(s).

Comparing 2026-07-30 to 2026-07-31 (1 day apart).

Technical Analysis

RSI (14)
64.0
Neutral
MACD Histogram
1.165
Bullish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Hh Hl
Bollinger %B
0.76
Inside Bands
Price vs Moving Averages
EMA 9
$214.98 Above
EMA 21
$204.90 Above
EMA 50
$190.65 Above
EMA 200
$172.49 Above

Fundamental Analysis

Valuation
94
Growth
65
Profitability
0
Financial Health
30
Cash Flow
37
Valuation
P/E Ratio 16.0×
P/B Ratio 2.45×
PEG Ratio -2.91
Dividend Yield 0.03%
52W High $227.00
52W Low $140.12
Quality & Growth
ROE 16.8%
ROA 5.1%
Gross Margin 16.1%
Operating Margin 3.8%
Revenue Growth YoY
Debt / Equity 1.59
AI Fundamental Assessment
P/E ratio of 16.0 (inexpensive relative to a 15-40x range); Price-to-book of 2.5x; PEG ratio of -2.9 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 0.2%; Return on assets of 0.1%; Net margin of 0.0%; Gross margin of 0.2%; Current ratio of 0.98 (tight short-term liquidity); Debt-to-equity of 1.59; Free cash flow margin of 0.6% (thin cash generation); Free cash flow per share is positive (7.26); Most recent quarter beat estimates by 4.8%; 2 consecutive earnings beats; EPS growth accelerating (+7.8% -> +18.7% QoQ); Average YoY EPS growth of -4.2%; Analyst estimates rising over recent quarters
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📈 Rating History 💰 Earnings 📰 Recent Events 🔄 What Changed 📖 Thesis Evolution 🔍 Similar Stocks
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