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Lithia Motors (LAD) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Lithia Motors (LAD - Free Report) closed at $284.16, marking a +1.85% move from the previous day. This change outpaced the S&P 500's 1.64% gain on the day. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.45%.
Prior to today's trading, shares of the auto dealership chain had lost 16.52% over the past month. This has lagged the Retail-Wholesale sector's loss of 5.31% and the S&P 500's loss of 0.83% in that time.
Investors will be hoping for strength from Lithia Motors as it approaches its next earnings release. In that report, analysts expect Lithia Motors to post earnings of $9.77 per share. This would mark year-over-year growth of 78.94%. Our most recent consensus estimate is calling for quarterly revenue of $6.39 billion, up 62.1% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $38.21 per share and revenue of $22.74 billion, which would represent changes of +110.06% and +73.26%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Lithia Motors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.58% higher. Lithia Motors is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Lithia Motors is currently trading at a Forward P/E ratio of 7.3. Its industry sports an average Forward P/E of 6.87, so we one might conclude that Lithia Motors is trading at a premium comparatively.
Meanwhile, LAD's PEG ratio is currently 0.35. 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. LAD's industry had an average PEG ratio of 0.35 as of yesterday's close.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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Lithia Motors (LAD) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Lithia Motors (LAD - Free Report) closed at $284.16, marking a +1.85% move from the previous day. This change outpaced the S&P 500's 1.64% gain on the day. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.45%.
Prior to today's trading, shares of the auto dealership chain had lost 16.52% over the past month. This has lagged the Retail-Wholesale sector's loss of 5.31% and the S&P 500's loss of 0.83% in that time.
Investors will be hoping for strength from Lithia Motors as it approaches its next earnings release. In that report, analysts expect Lithia Motors to post earnings of $9.77 per share. This would mark year-over-year growth of 78.94%. Our most recent consensus estimate is calling for quarterly revenue of $6.39 billion, up 62.1% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $38.21 per share and revenue of $22.74 billion, which would represent changes of +110.06% and +73.26%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Lithia Motors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.58% higher. Lithia Motors is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Lithia Motors is currently trading at a Forward P/E ratio of 7.3. Its industry sports an average Forward P/E of 6.87, so we one might conclude that Lithia Motors is trading at a premium comparatively.
Meanwhile, LAD's PEG ratio is currently 0.35. 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. LAD's industry had an average PEG ratio of 0.35 as of yesterday's close.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.