IBD Upgrades Lithia Motors Rating, Citing Improved Price Strength
December 8, 2023
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The company sells and services new and used vehicles, parts, and related services at its dealership locations throughout the United States. Recently, IBD (Investor’s Business Daily) has upgraded its rating of Lithia Motors ($NYSE:LAD)’ stock, citing the company’s improved price strength. The upgraded rating is a testament to the company’s success in navigating the current market environment. IBD noted that Lithia Motors’ stock price has been consistently increasing over the past few months.
Furthermore, the company’s price-to-earnings ratio is below the industry average, indicating that the stock is undervalued in comparison to its peers. This upgraded rating is certainly good news for investors. Investors looking to get involved in this company should keep an eye on IBD’s ratings for further updates on Lithia Motors’ performance in the future.
Share Price
On Tuesday, IBD upgraded its rating for LITHIA MOTORS stock, citing improved price strength. The stock opened at $279.0 and closed at $266.3, marking a decrease of 5.9% from the prior closing price of $283.1. This drop in price came despite IBD’s upgrade and indicates that investors may be cautious when it comes to investing in the company. Despite this, the stock still remains strong and is expected to continue to perform well in the future given the positive outlook given by IBD. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lithia Motors. More…
| Total Revenues | Net Income | Net Margin |
| 30.31k | 1.03k | 3.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lithia Motors. More…
| Operations | Investing | Financing |
| -269.8 | -1.55k | 1.86k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lithia Motors. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 18.27k | 12.2k | 217.9 |
Key Ratios Snapshot
Some of the financial key ratios for Lithia Motors are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 34.5% | 41.3% | 6.0% |
| FCF Margin | ROE | ROA |
| -1.7% | 19.4% | 6.2% |
Analysis
GoodWhale conducted an analysis of LITHIA MOTORS‘ wellbeing and found that the company is strong in dividend, growth, and medium in asset and profitability. We classified LITHIA MOTORS as a ‘gorilla’, a type of company which has achieved stable and high revenue or earning growth due to its strong competitive advantage. Our analysis also revealed an intermediate health score of 6/10 with regard to its cashflows and debt, indicating that LITHIA MOTORS is likely to sustain future operations in times of crisis. Given its strong performance metrics and competitive advantage, LITHIA MOTORS is likely to attract investors looking for consistent dividend and growth potential. The company’s sound financial position also adds to its appeal, providing stability and assurance for investors. More…
Peers
Lithia Motors Inc, AutoNation Inc, Group 1 Automotive Inc, and Penske Automotive Group Inc are all leading automotive retailers. They each have a large network of dealerships and offer a wide range of vehicles. These companies compete in terms of price, selection, and customer service.
– AutoNation Inc ($NYSE:AN)
AutoNation is the largest automotive retailer in the United States. The company operates over 300 dealerships across the country, selling both new and used cars. AutoNation is also a leading provider of vehicle finance and insurance products. The company’s market cap is 5.47B as of 2022, and its ROE is 56.13%. AutoNation is a publicly traded company, listed on the New York Stock Exchange under the ticker symbol AN.
– Group 1 Automotive Inc ($NYSE:GPI)
Group 1 Automotive Inc is a publicly traded automotive retailer that offers a range of automotive products and services, including new and used vehicles, financing, insurance, and parts and service. As of 2022, the company had a market capitalization of 2.53 billion and a return on equity of 32.9%. Group 1 Automotive is a leading provider of automotive products and services in the United States, with over 100 dealerships across the country. The company offers a wide variety of vehicles, including sedans, SUVs, trucks, and vans. In addition to selling vehicles, Group 1 Automotive also provides financing, insurance, and parts and service. The company has a strong reputation for customer service and is committed to providing a positive experience for all of its customers.
– Penske Automotive Group Inc ($NYSE:PAG)
Penske Automotive Group Inc is an American automotive retailer with a market cap of 7.28B as of 2022 and a ROE of 29.75%. The company operates in the United States, United Kingdom, and Australia. It sells and services vehicles through its dealerships.
Summary
Lithia Motors is an automotive retail company offering new and used vehicle sales, finance, service, and parts. Recently, IBD upgraded its rating from C to B-. This suggests that the company has shown improved price strength. Even though the stock price moved down the same day, investors should pay attention to the long-term potential of the company.
Lithia Motors has a wide range of offerings and with a new, improved rating, it is likely to attract more investors in the long-term. Investing in Lithia Motors could be beneficial for those investors seeking a diverse portfolio with the potential for steady returns.
