Lithia Motors (LAD) Gains But Lags Market: What You Should Know
In the latest trading session, Lithia Motors (LAD) closed at $286.29, marking a +1.72% move from the previous day.
In the latest trading session, Lithia Motors (LAD) closed at $286.29, marking a +1.72% move from the previous day. This move lagged the S&P 500's daily gain of 1.78%. At the same time, the Dow added 1.61%, and the tech-heavy Nasdaq gained 0.95%.
Coming into today, shares of the auto dealership chain had lost 4.54% in the past month. In that same time, the Retail-Wholesale sector lost 8.03%, while the S&P 500 lost 2.63%.
Lithia Motors will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $9.87, up 80.77% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.39 billion, up 62.1% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $38.29 per share and revenue of $22.74 billion. These totals would mark changes of +110.5% and +73.26%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Lithia Motors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.76% higher. Lithia Motors is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, Lithia Motors is holding a Forward P/E ratio of 7.35. This represents a premium compared to its industry's average Forward P/E of 6.63.
Meanwhile, LAD's PEG ratio is currently 0.35. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. LAD's industry had an average PEG ratio of 0.35 as of yesterday's close.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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