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Lithia Motors (LAD) Gains But Lags Market: What You Should Know
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Lithia Motors (LAD - Free Report) closed the most recent trading day at $297.79, moving +0.28% from the previous trading session. This change lagged the S&P 500's 0.64% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.46%.
Heading into today, shares of the auto dealership chain had gained 2.12% over the past month, outpacing the Retail-Wholesale sector's loss of 0.1% and lagging the S&P 500's gain of 4.56% 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 $9.85 per share. This would mark year-over-year growth of 80.4%. Meanwhile, our latest consensus estimate is calling for revenue of $6.35 billion, up 61.16% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Lithia Motors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% higher. Lithia Motors is currently a Zacks Rank #2 (Buy).
Digging into valuation, Lithia Motors currently has a Forward P/E ratio of 7.76. Its industry sports an average Forward P/E of 7.27, so we one might conclude that Lithia Motors is trading at a premium comparatively.
We can also see that LAD currently has a PEG ratio of 0.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Retail and Whole Sales industry currently had an average PEG ratio of 0.37 as of yesterday's close.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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Lithia Motors (LAD) Gains But Lags Market: What You Should Know
Lithia Motors (LAD - Free Report) closed the most recent trading day at $297.79, moving +0.28% from the previous trading session. This change lagged the S&P 500's 0.64% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.46%.
Heading into today, shares of the auto dealership chain had gained 2.12% over the past month, outpacing the Retail-Wholesale sector's loss of 0.1% and lagging the S&P 500's gain of 4.56% 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 $9.85 per share. This would mark year-over-year growth of 80.4%. Meanwhile, our latest consensus estimate is calling for revenue of $6.35 billion, up 61.16% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Lithia Motors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% higher. Lithia Motors is currently a Zacks Rank #2 (Buy).
Digging into valuation, Lithia Motors currently has a Forward P/E ratio of 7.76. Its industry sports an average Forward P/E of 7.27, so we one might conclude that Lithia Motors is trading at a premium comparatively.
We can also see that LAD currently has a PEG ratio of 0.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Retail and Whole Sales industry currently had an average PEG ratio of 0.37 as of yesterday's close.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.