An Automotive Retail Stock for 2020

Lithia MotorsLithia Motors Inc. (NYSE: LAD) is a retailer and franchise operator in the automotive resale market. It sells new and used vehicles in the domestic, import, and luxury categories. The company has been growing in recent years, and its latest earnings report makes it even more attractive to investors.

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Revenue at Lithia Motors has increased for five consecutive fiscal years. At the end of 2019, revenue was up by 7.20% while gross income was up by 9.98%. The company operates with a gross profit margin of 14.77% and an EBITDA margin of 4.59%. Profitability allows for a moderate dividend with a yield of 0.59% today.

The stock is currently outperforming expectations thanks to a positive second quarter fiscal report. The company generated earnings per share of $3.72, up from the $2.95 reported a year ago. This was a 146% surprise over the average analyst estimate.

The Coronavirus Pandemic will impact sales in 2020. Revenue of $11.85 billion is expected in the current fiscal year, compared to $12.67 billion in 2019. Investors have factored this decline into recent activity, with strong optimism for recovery along with the rest of the U.S. economy. Anyone looking for an automotive pick can consider this stock in July. Its historical performance is strong and it has the brand recognition and franchise infrastructure to come back from the current drop in consumer spending.

Key Data:

  • 1 Year Price Growth: 02%
  • YTD Price Growth: 33%
  • 3 Month Price Growth: 84%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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