Asbury Automotive Group is one of the largest auto dealership companies in the US. It operates more than 90 stores and 25 collision centres. Asbury’s presence is predominantly in Texas and the south-eastern part of the US. Most of Asbury’s car sales are in the luxury segment. The company has been growing lately through acquisitions. Parts and services segments have relatively higher margins, and even with the transition to electric vehicles, the demand for service is expected to sustain. So, the long-term prospects of Asbury Automotive are bright.

The long-term monthly chart for Asbury Group shows an uptrend from 2012 to 2015 followed by sideways movement till 2019. After that point, prices started moving up before the March 2020 crash caused a fall of 50% in just one month. Since then, however, prices have risen significantly by about 4X. There were no significant retracements either throughout this rise until June 2021, when prices fell 20%. However, the bottom trend line has been intact throughout the uptrend. In July 2021, prices look to be bouncing back up from close to the bottom trend line, as well as an important resistance-turned-support zone at $172. The likely price target is over $200, while a stop loss can be placed below the bottom trend line at $160.

Position entered into our long-term tracking portfolio today. The entry point is at $190.22 and, a stop-loss placed $155.48, which is 18% below the entry point. The short-term to medium-term take profit at the top of the trend is set at $212.23, giving a profit of 12%.