We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lithia Motors (LAD) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
Lithia Motors (LAD - Free Report) closed at $297.80 in the latest trading session, marking a -1.14% move from the prior day. This change lagged the S&P 500's 0.92% gain on the day. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq gained 0.54%.
Prior to today's trading, shares of the auto dealership chain had gained 6.55% over the past month. This has outpaced the Retail-Wholesale sector's loss of 4.75% and the S&P 500's loss of 0.85% in that time.
Wall Street will be looking for positivity from Lithia Motors as it approaches its next earnings report date. In that report, analysts expect Lithia Motors to post earnings of $9.94 per share. This would mark year-over-year growth of 82.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.35 billion, up 61.16% from the year-ago period.
Investors should also note any 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 1.93% higher within the past month. Lithia Motors is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Lithia Motors has a Forward P/E ratio of 8.04 right now. This valuation marks a premium compared to its industry's average Forward P/E of 7.71.
Investors should also note that LAD has a PEG ratio of 0.38 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Automotive - Retail and Whole Sales stocks are, on average, holding a PEG ratio of 0.38 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 6, which puts it in the top 3% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Lithia Motors (LAD) Stock Sinks As Market Gains: What You Should Know
Lithia Motors (LAD - Free Report) closed at $297.80 in the latest trading session, marking a -1.14% move from the prior day. This change lagged the S&P 500's 0.92% gain on the day. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq gained 0.54%.
Prior to today's trading, shares of the auto dealership chain had gained 6.55% over the past month. This has outpaced the Retail-Wholesale sector's loss of 4.75% and the S&P 500's loss of 0.85% in that time.
Wall Street will be looking for positivity from Lithia Motors as it approaches its next earnings report date. In that report, analysts expect Lithia Motors to post earnings of $9.94 per share. This would mark year-over-year growth of 82.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.35 billion, up 61.16% from the year-ago period.
Investors should also note any 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 1.93% higher within the past month. Lithia Motors is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Lithia Motors has a Forward P/E ratio of 8.04 right now. This valuation marks a premium compared to its industry's average Forward P/E of 7.71.
Investors should also note that LAD has a PEG ratio of 0.38 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Automotive - Retail and Whole Sales stocks are, on average, holding a PEG ratio of 0.38 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 6, which puts it in the top 3% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.