Back to top

Image: Bigstock

Lithia Motors (LAD) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, Lithia Motors (LAD - Free Report) closed at $292.67, marking a -0.18% move from the previous day. This change lagged the S&P 500's 0.64% gain on the day. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq added 0.14%.

Coming into today, shares of the auto dealership chain had gained 0.99% in the past month. In that same time, the Retail-Wholesale sector gained 1.3%, while the S&P 500 gained 3.19%.

LAD will be looking to display strength as it nears its next earnings release. On that day, LAD is projected to report earnings of $5.34 per share, which would represent year-over-year growth of 81.02%. Our most recent consensus estimate is calling for quarterly revenue of $3.94 billion, up 20.51% from the year-ago period.

LAD's full-year Zacks Consensus Estimates are calling for earnings of $18.03 per share and revenue of $13.28 billion. These results would represent year-over-year changes of +53.32% and +4.78%, respectively.

Investors should also note any recent changes to analyst estimates for LAD. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.88% higher. LAD currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, LAD is holding a Forward P/E ratio of 16.26. This valuation marks a premium compared to its industry's average Forward P/E of 10.4.

Meanwhile, LAD's PEG ratio is currently 0.74. 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. Automotive - Retail and Whole Sales stocks are, on average, holding a PEG ratio of 1.01 based on yesterday's closing prices.

The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 9, which puts it in the top 4% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Lithia Motors, Inc. (LAD) - free report >>

Published in