Subscribe to Entrepreneur for $5
Subscribe

Why Lithia Motors (LAD) Isn't Done Growing Earnings Yet

If you are looking for a fast-growing stock that is still seeing plenty of opportunities on the horizon, make sure to consider Lithia Motors (LAD).

By
This story originally appeared on Zacks

Growth stocks can be some of the most exciting picks in the market, as these high-flyers can captivate investors’ attention, and produce big gains as well. However, they can also lead on the downside when the growth story is over, so it is important to find companies which are still seeing strong growth prospects in their businesses.

- Zacks

One such company that might be well-positioned for future earnings growth is Lithia Motors, Inc. LAD. This firm, which is in the Automotive - Retail and Whole Sales industry, saw EPS growth of 54.7%  last year, and is looking great for this year too.

In fact, the current growth estimate for this year calls for earnings-per-share growth of 110.5%. Furthermore, the long-term growth rate is currently an impressive 20.9%,  suggesting pretty good prospects for the long haul.

And if this wasn’t enough, the stock has actually seen estimates rise over the past month for the current fiscal year by about 1.8%. Thanks to this rise in earnings estimates, LAD has a Zacks Rank #2 (Buy) which further underscores the potential for outperformance in this company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

So if you are looking for a fast growing stock that is still seeing plenty of opportunities on the horizon, make sure to consider LAD. Not only does it have double-digit earnings growth prospects, but its impressive Zacks Rank suggests that analysts believe better days are ahead for LAD as well.

 



Zacks’ Top Picks to Cash in on Artificial Intelligence

This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.

See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Lithia Motors, Inc. (LAD): Free Stock Analysis Report

 

To read this article on Zacks.com click here.

 

Zacks Investment Research