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Lithia (LAD) to Grow From Store Openings & Acquisitions
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On Feb 23, we issued an updated research report on Lithia Motors, Inc. (LAD - Free Report) .
On Feb 14, the company announced fourth-quarter and full-year 2017 results. It reported adjusted earnings per share of $2.15 in fourth-quarter 2017, beating the Zacks Consensus Estimate of $2.10. Quarterly revenues rose 18% to $2.7 billion. The top line also surpassed the Zacks Consensus Estimate of $2.68 billion. Further, the company anticipates a positive outlook for 2018.
For 2018, Lithia Motors projects revenues to be in the range of $11-$11.5 billion, a rise from $10.1 billion generated in 2017. Also, adjusted earnings per share are expected to be $10.5, as against $8.39 in 2017. These positive expectations are on the back of lower tax rates and improved operations during the year.
Earnings estimates for Lithia Motors have been going up lately. The Zacks Consensus Estimate for annual earnings for the stock has been revised 4.3% upward, in the last seven days.
The company is poised to benefit from its business expansion through acquisitions and store openings. In 2017, Lithia Motors acquired a total of 18 stores and opened one, which is expected to generate annualized revenue of over $1.7 billion.
Also, in order to boost shareholders confidence in the company, its management pursues regular quarterly cash dividend payment. For fourth-quarter 2017, the company will pay a dividend of 27 cents on Mar 23, to shareholders of record on Mar 9, 2018.
Price Performance
Over a year, shares of Lithia Motors’ have outperformed the industry it belongs to. During the time period, the company’s stock gained 12.3% in comparison with the industry’s rally of 5%.
General Motors has an expected long-term growth rate of 8.4%. In the last six months, shares of the company have gained 15.2%.
PACCAR has an expected long-term growth rate of 10%. In the last six months, shares of the company have gained 10.7%.
Penske Automotive has an expected long-term growth rate of 10%. In the last three months, shares of the company have gained 3.4%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geopolitics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Lithia (LAD) to Grow From Store Openings & Acquisitions
On Feb 23, we issued an updated research report on Lithia Motors, Inc. (LAD - Free Report) .
On Feb 14, the company announced fourth-quarter and full-year 2017 results. It reported adjusted earnings per share of $2.15 in fourth-quarter 2017, beating the Zacks Consensus Estimate of $2.10. Quarterly revenues rose 18% to $2.7 billion. The top line also surpassed the Zacks Consensus Estimate of $2.68 billion. Further, the company anticipates a positive outlook for 2018.
For 2018, Lithia Motors projects revenues to be in the range of $11-$11.5 billion, a rise from $10.1 billion generated in 2017. Also, adjusted earnings per share are expected to be $10.5, as against $8.39 in 2017. These positive expectations are on the back of lower tax rates and improved operations during the year.
Lithia Motors, Inc. Price and Consensus
Lithia Motors, Inc. Price and Consensus | Lithia Motors, Inc. Quote
Earnings estimates for Lithia Motors have been going up lately. The Zacks Consensus Estimate for annual earnings for the stock has been revised 4.3% upward, in the last seven days.
The company is poised to benefit from its business expansion through acquisitions and store openings. In 2017, Lithia Motors acquired a total of 18 stores and opened one, which is expected to generate annualized revenue of over $1.7 billion.
Also, in order to boost shareholders confidence in the company, its management pursues regular quarterly cash dividend payment. For fourth-quarter 2017, the company will pay a dividend of 27 cents on Mar 23, to shareholders of record on Mar 9, 2018.
Price Performance
Over a year, shares of Lithia Motors’ have outperformed the industry it belongs to. During the time period, the company’s stock gained 12.3% in comparison with the industry’s rally of 5%.
Zacks Rank & Other Key Picks
Lithia Motors has a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the auto space are General Motors Company (GM - Free Report) , PACCAR, Inc. (PCAR - Free Report) and Penske Automotive Group, Inc. (PAG - Free Report) each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
General Motors has an expected long-term growth rate of 8.4%. In the last six months, shares of the company have gained 15.2%.
PACCAR has an expected long-term growth rate of 10%. In the last six months, shares of the company have gained 10.7%.
Penske Automotive has an expected long-term growth rate of 10%. In the last three months, shares of the company have gained 3.4%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geopolitics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>