ASX Stocks in Focus: CAR Group and Aristocrat Leisure Limited

2 min read | October 21, 2024 06:34 PM AEDT | By Team Kalkine Media

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Highlights

CAR Group Limited has seen notable share price growth since the start of 2024.

Aristocrat Leisure Limited is tracking well above its 52-week low.

Both companies have a significant presence in their respective industries.

The Australian Stock Exchange has two companies that have caught attention recently—CAR Group Limited and Aristocrat Leisure Limited. These companies operate in different sectors but have both shown impressive movements in their share prices, making them worth highlighting.

CAR Group Limited (ASX:CAR) Overview

CAR Group Limited, founded in 1997, operates the Carsales.com platform, which serves as an online marketplace for vehicles, including cars, motorbikes, and boats. The platform aims to streamline the process of vehicle transactions for buyers and sellers alike. This online service provides a safer alternative to cash transactions, utilizing escrow services to ensure both parties are satisfied before funds are released.

The company has expanded its reach beyond Australia, operating in markets across South America and Southeast Asia. With over 600 employees, CAR Group has established itself as a significant player in the online automotive market. Since the start of 2024, the CAR share price has increased significantly, showing growth of over 20%. This rise reflects its solid business performance and potential for continued expansion.

Aristocrat Leisure Limited (ASX:ALL) Performance

Founded in 1953, Aristocrat Leisure Limited is well-known as a leading manufacturer of gambling machines. Headquartered in Sydney, the company has grown to become one of the largest producers of slot machines globally. However, Aristocrat's business is not limited to traditional gaming machines. The company has steadily expanded into online gaming, and this segment now contributes significantly to its total revenue, accounting for nearly half.

The share price of Aristocrat Leisure Limited has been on a positive trend recently, rebounding strongly from its 52-week lows. This movement demonstrates its resilience and the growing contribution of its online gaming division.

Valuation Insights

Looking at CAR Group’s current price-to-sales (P/S) ratio, it stands at approximately 13.03x, which is below its 5-year average of 14.28x. This could suggest that the stock is currently trading below its historical levels, offering a different perspective on its growth. Although CAR has shown revenue growth over the past few years, context is key when considering valuation metrics.

Both CAR Group Limited and Aristocrat Leisure Limited showcase interesting developments in their respective sectors, contributing to the ongoing buzz around these ASX stocks.

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