Lithia Motors, Inc. (LAD - Free Report) recently updated on the recoveries across all business lines from the declines witnessed in March and April, as states continue to ease the shelter-in-place strategies and begin reopening processes, which were imposed due to the coronavirus outbreak.
Significant progress was witnessed by the end of May, with same-store new vehicle unit sales declining roughly 16% year over year compared with the 28% year-over-year fall registered during the first week of the month. Sales of the same-store used vehicle unit increased around 22% year over year during the last week of May compared with the 5% decline witnessed in the beginning of the month.
The rise in unit sales of used vehicles in May returned to the solid levels achieved during the first two months of 2020 and before the pandemic. Moreover, for the last week of May, the same-store web traffic, reflecting new visits to the company's websites, jumped almost 40% year over year.
However, total same-store vehicle unit sales decreased about 7% year over year in May, with the same-store new vehicle unit sales falling about 20%, and same-store used vehicle unit sales rising about 8%, year on year.
Nonetheless, Lithia is widening its omni-channel capabilities in order to expand and modernize transportation solutions for customers. A diverse physical network and robust brands will boost the company’s sales. An expanded physical network, combined with enhanced digital solutions, will help Lithia further boost its profitability and market presence.
In addition, Lithia continuously strives to make acquisitions for increasing its market share and catering to customer requirements in a better way. For instance, it recently acquired Williams Automotive's Honda and Toyota dealerships in Florida. Acquisitions of Lincoln Morgantown and Hazleton Honda dealerships are also anticipated to generate higher returns for the company in the upcoming period.
Zacks Rank & Stocks to Consider
Lithia currently carries a Zacks Rank #3 (Hold). Shares of the company have depreciated 8.2%, year to date, compared with the industry’s decline of 21.5%.
Some better-ranked stocks in the same sector are Tesla, Inc. (TSLA - Free Report) , Niu Technologies (NIU - Free Report) and Halfords Group Plc (HLFDY - Free Report) , each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Tesla have appreciated 111.1%, year to date, compared with its industry’s rise of 28%.
Shares of Niu have gained 28.9%, year to date, as against the industry’s decline of 12.3%.
Shares of Halfords have rallied 44.2%, year to date, as against its industry’s decline of 12.2%.
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