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AutoNation Collaborates With Fair for Digital Technology

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AutoNation, Inc. (AN - Free Report) announced a collaboration with Santa Monica-based car subscription company, Fair. This partnership signals America’s largest automotive retailer’s unwavering commitment in embracing technology in car subscription to enhance customer experience. This will provide customers a new access to a ‘month-to-month subscription model’ that will allow them to shop a vehicle through the Fair app from anywhere.

This collaboration opens up new sales channel for AutoNation’s dealerships. Car shoppers can choose from the inventory through their smartphone. The subscription model of Fair offers consumer flexibility in personal transportation. This also allows them to keep a car for as long as they wish and leave it at any time without bearing any penalty.

AutoNation offers vehicle maintenance and repair services, vehicle parts, extended service contracts, vehicle protection products, and other aftermarket products. This partnership holds huge potential and provides customers with an alternative car ownership option.
 
In the past year, AutoNation underperformed the industry it belongs to. The company’s shares have declined 28.3% over this period, whereas the industry decreased 17.4%.



Zacks Rank & Key Picks

Currently, AutoNation has a Zacks Rank #3 (Hold).

A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Fox Factory Holding Corp. (FOXF - Free Report) and AutoZone, Inc. (AZO - Free Report) . While Allison Transmission and Fox Factory sport a Zacks Rank #1 (Strong Buy), AutoZone carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 7.5%.

Fox Factory has an expected long-term growth rate of 17.2%. Over the past six months, shares of the company have risen 93.7%.

AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have risen 24.5 %.

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