63.92 +0.44 (+0.69%) Sell

ABG does a dead cat bounce, it's still too early to buy into it

13 min read

ASBURY AUTOMOTIVE GROUP INC delivered good returns today. It grew by +0.69% to close at 63.92. It's recent 5 day performance has been -1.35%, -2.43%, -0.6%, -5.4% and +1.48%.

[Themes containing ABG]

ABG is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +6.98% for investors.


ABG has been underperforming the SP500 index in recent time, after having outperformed till 4 Jan, 2016. Over the last 2 years 11 months and 7 days, ABG underperformed the SP500 index on 48% days. Which indicates that on days ABG underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ABG was mostly loss making and delivered on average -0.16% per day. It's best return during this period (of +11.22%) was on Tuesday, 23 Oct, 2018. While it's worst loss in the same period (of -5.4%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 28 Sep, 2018 and went on till 5 Oct, 2018. The trend delivered -10.16% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +4.86% to investors.

On monthly basis, ABG delivered profits in more months over the last year, than losses. ABG delivered profits less regularly than SP500 index. ABG significantly outperformed SP500 index in Jan 2018, when it returned +14.86% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ABG had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both ABG and SP500 index significantly outperform during months when quarterly/annual results are announced.

Happiness lies in the joy of achievement and the thrill of creative effort.
-- Franklin D. Roosevelt

ABG is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in ABG's volatility from 13 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that ABG has significant positive skewness in it's return distribution. This indicates that investors can expect ABG to recover from drawdowns quickly. Which makes ABG a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

ABG has more chance of extreme outcomes than the SP500 index. Therefore, ABG must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than ABG.

Based on your interest in ABG you may find it interesting to know that APRN has shown remarkable performance and deserves to be on every investors' watchlist.

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