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The Zacks Analyst Blog Highlights: Sonic Automotive, Builders FirstSource, Group 1, Tempur Sealy and Lithia Motors

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For Immediate Release

Chicago, IL –December 17, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Sonic Automotive, Inc. (SAH - Free Report) , Builders FirstSource, Inc. (BLDR - Free Report) , Group 1 Automotive, Inc. (GPI - Free Report) , Tempur Sealy International, Inc. (TPX - Free Report) and Lithia Motors, Inc. (LAD - Free Report) .

Here are highlights from Monday’s Analyst Blog:

5 Retail Stocks that More than Doubled This Year

Retail is a vast and eventful sector. The space is all spruced up with revised rules and action plans. From marketing, showcasing, store formats to delivery — everything in retail is fast evolving. Retailers have been framing marketing strategies or developing promotional pitches depending on consumers’ feedback.

The retail space is mainly focusing on brick-and-mortar and online platforms. Some players in the space have been gaining from their exclusive merchandise and brand offerings, inventory-management initiatives, supply-chain optimization, digital expansion and loyalty programs as well as accelerating shipping and delivery capabilities. Favorable product mix, strategic alliances and buyouts, constant innovation and marketing initiatives have helped retailers tap growth opportunities.

Certainly, the sector is quite competitive and fragmented with companies vying for a bigger slice of the market on attributes such as price, products and speed-to-market. Again, higher digital marketing investments as well as constant store remodeling and refurbishments have been bumping up costs. This has kept margins under pressure to a certain extent.

No wonder, 2019 has been a roller coaster ride for the space, which has witnessed fundamental changes in its dynamics, with technology taking center stage and online shopping gaining preference over traditional ways. Definitely, some players in the space took a while to accommodate and evolve with changes in the retail landscape.

But there are stocks that have displayed outstanding performance on the bourses backed by sound fundamentals, solid labor market and steady wage gains. These stocks have more than doubled year to date.

5 Prominent Picks

Charlotte, NC-based Sonic Automotive, Inc., an automotive retailer in the United States, has surged a whopping 139.2% year to date. Moreover, the Zacks Consensus Estimate for the company’s next-year EPS has moved up 15.7% over the past 60 days. Sonic Automotive boasts a VGM Score of A. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Builders FirstSource, Inc. is a Dallas, TX-based manufacturer and supplier of building materials and construction services. The stock has surged 132.4% year to date. The Zacks Consensus Estimate for the company’s next-year EPS has climbed 11.2% over the past 60 days. Builders FirstSource boasts a VGM Score of A and currently displays a Zacks Rank #2 (Buy).

Group 1 Automotive, Inc. is a Houston, TX-based automotive retailer. Shares of the company have grown 103.3% so far this year. Moreover, the Zacks Consensus Estimate for this Zacks Rank #2 company’s next-year EPS has inched up 3.2% over the past 60 days. Currently, the company boasts a VGM Score of A.

Tempur Sealy International, Inc., which is a developer, manufacturer and distributor of bedding products, has skyrocketed 108.5% year to date. The Zacks Consensus Estimate for the company’s next-year EPS has inched up 3.4% over the past 60 days. Shares of the company have skyrocketed 108.5% year to date. Tempur Sealy boasts a VGM Score of A and a Zacks Rank #2.

Lithia Motors, Inc.is a leading automotive retailer. Shares of this Medford, OR-based company have recorded growth of 108.2% so far this year. This Zacks Rank #1 stock boasts a VGM Score of A. Moreover, the Zacks Consensus Estimate for its next-year EPS has increased 5.5% over the past 60 days.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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