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Lithia Motors (LAD) Stock Sinks As Market Gains: What You Should Know
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Lithia Motors (LAD - Free Report) closed at $291.31 in the latest trading session, marking a -1.56% move from the prior day. This change lagged the S&P 500's daily gain of 0.94%. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, lost 0.55%.
Prior to today's trading, shares of the auto dealership chain had lost 0.66% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 7.22% and the S&P 500's loss of 4.63% in that time.
Lithia Motors will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2022. The company is expected to report EPS of $9.99, up 82.97% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.32 billion, up 60.29% from the prior-year quarter.
Any recent changes to analyst estimates for Lithia Motors should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 1.35% higher. Lithia Motors is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Lithia Motors currently has a Forward P/E ratio of 7.9. For comparison, its industry has an average Forward P/E of 7.44, which means Lithia Motors is trading at a premium to the group.
Also, we should mention that LAD has a PEG ratio of 0.37. 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. The Automotive - Retail and Whole Sales was holding an average PEG ratio of 0.37 at yesterday's closing price.
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 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) Stock Sinks As Market Gains: What You Should Know
Lithia Motors (LAD - Free Report) closed at $291.31 in the latest trading session, marking a -1.56% move from the prior day. This change lagged the S&P 500's daily gain of 0.94%. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, lost 0.55%.
Prior to today's trading, shares of the auto dealership chain had lost 0.66% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 7.22% and the S&P 500's loss of 4.63% in that time.
Lithia Motors will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2022. The company is expected to report EPS of $9.99, up 82.97% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.32 billion, up 60.29% from the prior-year quarter.
Any recent changes to analyst estimates for Lithia Motors should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 1.35% higher. Lithia Motors is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Lithia Motors currently has a Forward P/E ratio of 7.9. For comparison, its industry has an average Forward P/E of 7.44, which means Lithia Motors is trading at a premium to the group.
Also, we should mention that LAD has a PEG ratio of 0.37. 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. The Automotive - Retail and Whole Sales was holding an average PEG ratio of 0.37 at yesterday's closing price.
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 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.