Stock Alert: Group 1 Automotive Advances 19%

(RTTNews) - Shares of automotive retailer, Group 1 Automotive (GPI) increased $9.10 or 19.84% on Monday before closing at $54.97.

U.S. stocks bounced back on Monday on the hopes of Coronavirus vaccine and Federal Reserve Chair Jerome Powell's optimism of economic recovery in the second half of the year.

The automotive industry was badly hit by the coronavirus pandemic. Group 1 Automotive shares hit 52-week low of $26.26 by mid-March. The stock then more than doubled from that level.

The U.S. auto industry is slowly coming back to life as carmakers including General Motors, Ford, and Fiat Chrysler and Tesla have reopened their plants on Monday.

Early this month, when Group 1 reported its first-quarter results, revenue had decreased 4.2% year-over-year at $2.69 billion.

Although Group 1 Automotive sees its second-quarter results to be significantly lower than the prior year, the company anticipates service to recover more quickly than vehicle sales, with both beginning to recover in the late spring and summer months.