Penske Automotive Group shows a strong performance for several trading sessions.

Regarding the fundamentals, the company is strong as underlined by its Surperformance ratings. Sales are expected to gradually rise in the coming years, reaching 17.6 billion dollars by 2015. Moreover, this growth should be obtained with steady margins. Analysts have revised upward by 10% their estimations for both revenue and EPS, showing the good dynamic of the group’s activities. Considering the EV/Sales ratio at 0.40 and P/E of 14.7 time 2014 estimates, the company seems undervalued compared to its peers and prices are likely to go up in order to catch up during the coming sessions.

Technically, the share has a bullish configuration on all time scales. Prices are supported by increasing moving averages as shown by the 20 days one. The share started to accelerate recently and should overcome its USD 47.5 resistance level that stopped the price progression at the end of April. The breakout of this level will be the signal that the bullish trend has resumed.

Therefore, investors will benefit from the signal given by the crossing of the USD 47.5 resistance to take a long position in the stock. The objective will be set near USD 51. Once the position is opened, a stop loss should be fixed under effective entry point to protect from a trend reversal.