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Lithia Motors (LAD) Outpaces Stock Market Gains: What You Should Know
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Lithia Motors (LAD - Free Report) closed the most recent trading day at $297.86, moving +0.54% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.43%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.2%.
Coming into today, shares of the auto dealership chain had lost 8.37% in the past month. In that same time, the Retail-Wholesale sector gained 3.8%, while the S&P 500 gained 3.69%.
Investors will be hoping for strength from Lithia Motors as it approaches its next earnings release, which is expected to be April 20, 2022. In that report, analysts expect Lithia Motors to post earnings of $9.58 per share. This would mark year-over-year growth of 62.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.96 billion, up 37.33% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $40.62 per share and revenue of $26.38 billion, which would represent changes of +1.47% and +15.56%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Lithia Motors. 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.
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, 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 0.72% higher. Lithia Motors is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Lithia Motors currently has a Forward P/E ratio of 7.29. For comparison, its industry has an average Forward P/E of 6.12, which means Lithia Motors is trading at a premium to the group.
It is also worth noting that LAD currently has a PEG ratio of 1.59. 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 0.34 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 13, which puts it in the top 6% 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.
View the Zacks #1 Rank List
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Lithia Motors (LAD) Outpaces Stock Market Gains: What You Should Know
Lithia Motors (LAD - Free Report) closed the most recent trading day at $297.86, moving +0.54% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.43%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.2%.
Coming into today, shares of the auto dealership chain had lost 8.37% in the past month. In that same time, the Retail-Wholesale sector gained 3.8%, while the S&P 500 gained 3.69%.
Investors will be hoping for strength from Lithia Motors as it approaches its next earnings release, which is expected to be April 20, 2022. In that report, analysts expect Lithia Motors to post earnings of $9.58 per share. This would mark year-over-year growth of 62.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.96 billion, up 37.33% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $40.62 per share and revenue of $26.38 billion, which would represent changes of +1.47% and +15.56%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Lithia Motors. 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.
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, 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 0.72% higher. Lithia Motors is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Lithia Motors currently has a Forward P/E ratio of 7.29. For comparison, its industry has an average Forward P/E of 6.12, which means Lithia Motors is trading at a premium to the group.
It is also worth noting that LAD currently has a PEG ratio of 1.59. 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 0.34 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 13, which puts it in the top 6% 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.