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Lithia (LAD) Acquires 6 Auto Stores, Adds $900M Revenue
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Lithia Motors, Inc. (LAD - Free Report) has made the announcement of acquiring six auto stores from Prestige Family of Fine Cars in Bergen County, NJ. The acquired stores include a BMW, Mini, Mercedes, Toyota and two Lexus stores and this acquisition is likely to generate steady state revenues of $900 million, annually.
Located in Paramus and Ramsey, these stores will add to the diversification mix of Lithia Motors in the Northeast and will strengthen its offerings of luxury products. In fact, Lithia Motors, the leading automotive retailer in the United States, aims at building strong franchised stores in key marketplaces, where the company is yet to realize its full potential.
The company has stated that this latest acquisition, along with the earlier declared acquisitions of Day Auto Group and Ray Laks, has generated annual steady state revenues of over $1.3 billion in the first two months of 2018. This has prompted Lithia Motors to raise its 2018 outlook for annual revenues in the band of $12-$12.5 billion and the earnings per share to $10.60.
In the past three months, shares of Lithia Motors have underperformed the industry it belongs to. Over this period, shares of the company have declined 13.7%, while the industry has fallen by 9.6%.
Lithia Motors currently carries a Zacks Rank #2 (Buy).
Gentex Corporation has an expected long-term growth rate of 9.7%. In the past six months, shares of the company have gained 23.8%.
Volkswagen has an expected long-term growth rate of 18.7%. The shares of the company have risen 21.3% in the past six months.
AB Volvo has an expected long-term growth rate of 15%. In the past six months, shares of the company have inched up 0.3%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Lithia (LAD) Acquires 6 Auto Stores, Adds $900M Revenue
Lithia Motors, Inc. (LAD - Free Report) has made the announcement of acquiring six auto stores from Prestige Family of Fine Cars in Bergen County, NJ. The acquired stores include a BMW, Mini, Mercedes, Toyota and two Lexus stores and this acquisition is likely to generate steady state revenues of $900 million, annually.
Located in Paramus and Ramsey, these stores will add to the diversification mix of Lithia Motors in the Northeast and will strengthen its offerings of luxury products. In fact, Lithia Motors, the leading automotive retailer in the United States, aims at building strong franchised stores in key marketplaces, where the company is yet to realize its full potential.
The company has stated that this latest acquisition, along with the earlier declared acquisitions of Day Auto Group and Ray Laks, has generated annual steady state revenues of over $1.3 billion in the first two months of 2018. This has prompted Lithia Motors to raise its 2018 outlook for annual revenues in the band of $12-$12.5 billion and the earnings per share to $10.60.
In the past three months, shares of Lithia Motors have underperformed the industry it belongs to. Over this period, shares of the company have declined 13.7%, while the industry has fallen by 9.6%.
Lithia Motors currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the auto space are Gentex Corporation (GNTX - Free Report) , Volkswagen AG and AB Volvo (VLVLY - Free Report) . Each of these stocks carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Gentex Corporation has an expected long-term growth rate of 9.7%. In the past six months, shares of the company have gained 23.8%.
Volkswagen has an expected long-term growth rate of 18.7%. The shares of the company have risen 21.3% in the past six months.
AB Volvo has an expected long-term growth rate of 15%. In the past six months, shares of the company have inched up 0.3%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks’ 3 Best Stocks to Play This Trend >>