Group 1 - Lithia Motors Inc. is recognized as one of the best used-car stocks to buy, with a Buy rating and a price target of $400 from Benchmark analysts [1][2] - The company is experiencing growth through its acquisition of Fine Ford in the Greater Toronto Area, which is expected to increase annualized revenue by $100 million [3][4] - Despite a bullish outlook, the research firm has adjusted forecasts, predicting reductions in new-vehicle volumes and gross profit per unit, with an estimated adjusted EBITDA of $409 million for the fourth quarter [2][3] Group 2 - Lithia Motors operates over 470 locations across the U.S., Canada, and the UK, providing a full spectrum of transportation solutions, including vehicle sales, financing, and repair services [4] - The company's omnichannel approach, including Driveway.com, facilitates both online and in-store purchasing, enhancing customer experience [4]

Lithia Motors, Inc. ( LAD ), the auto dealership aggregator, has changed its capital allocation over the past two years. It has reduced the proportion that goes to acquisitions and increased the proportion for shareholder rewards.Robert F. Abbott has been investing his family’s accounts since 1995, and in 2010 added options, mainly covered calls and collars with long stocks. He is a freelance writer, and his projects include a website that provides information for new and intermediate-level mutual fund inve ...

Lithia Motors, Inc. ( LAD ), the auto dealership aggregator, has changed its capital allocation over the past two years. It has reduced the proportion that goes to acquisitions and increased the proportion for shareholder rewards.Robert F. Abbott has been investing his family’s accounts since 1995, and in 2010 added options, mainly covered calls and collars with long stocks. He is a freelance writer, and his projects include a website that provides information for new and intermediate-level mutual fund inve ...

Group 1 - Lithia & Driveway (NYSE: LAD) will release its fourth quarter 2025 earnings and full year results on February 11, 2026, before the market opens [1] - A conference call to discuss the earnings results is scheduled for the same day at 10:00 a.m. Eastern Time [1] - The conference call can be accessed by telephone or via the company's website for live listening and replay [2] Group 2 - Lithia & Driveway is the largest global automotive retailer, offering a wide range of products and services throughout the vehicle ownership lifecycle [3] - The company emphasizes simple, convenient, and transparent experiences through its extensive network of physical locations and e-commerce platforms [3] - Lithia & Driveway aims for consistent, profitable growth in a large and unconsolidated industry, leveraging its diversified and competitively differentiated design [3]

Core Viewpoint - Lithia Motors, Inc. (NYSE:LAD) is identified as an undervalued cyclical stock with positive ratings from Benchmark and Evercore ISI, indicating potential investment opportunities [1][2]. Group 1: Analyst Ratings and Price Targets - Benchmark has reiterated a Buy rating on Lithia Motors with a price target of $400 [1]. - Evercore ISI has also maintained a Buy rating, setting a higher price target of $500 [1]. Group 2: Performance Forecasts - Benchmark's updated forecasts indicate a reduction in production volumes and gross profit per unit, expecting a deleveraging to 67% of sales for Lithia Motors [2]. - The firm anticipates Lithia Motors to generate $409 million in EBITDA for the fourth quarter, with an adjusted EPS of $8.21 [2]. - Evercore ISI expects the company to perform in line with market expectations during the fiscal fourth quarter, with projected revenue of approximately $9.30 billion and a GAAP EPS of $8.41 [3]. Group 3: Company Overview - Lithia Motors is the largest auto dealer in the United States, involved in the retail of new and used vehicles along with related services [4].

Company Overview - Lithia Motors, Inc. is a leading automotive retailer in the United States, offering 52 vehicle brands across 459 locations in the U.S., U.K., and Canada as of December 31, 2024 [11]. Investment Ratings - Lithia Motors has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid position in the market [11]. - The company has a Momentum Style Score of B, with shares increasing by 13.7% over the past four weeks [12]. Earnings Estimates - For fiscal 2025, three analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.84 to $35.62 per share [12]. - Lithia Motors has an average earnings surprise of +6.5%, suggesting a positive trend in earnings performance [12].

Core Insights - The automotive retail industry is experiencing a digital transformation, with major dealership groups investing in cloud-based platforms to enhance operational efficiency [2] Group 1: Company Performance - Asbury Automotive operates 175 new vehicle dealerships and 39 collision centers, generating $4.80 billion in revenue during Q3 2025 [3] - AutoNation, the largest automotive retailer in the U.S., reported $27.92 billion in trailing twelve-month revenue [4] - Lithia Motors, the second-largest retailer, achieved $37.61 billion in revenue [5] Group 2: Digital Initiatives - Asbury is implementing Tekion's cloud-based dealership management system across its network, with a focus on improving operational efficiency [3][7] - AutoNation has invested in digital retail innovations, allowing customers to complete approximately 80% of the car-buying process online [4] - Lithia Motors has developed its Driveway digital platform, averaging 1.3 million unique visitors per month in Q2 2025 [5] Group 3: Financial Metrics - Asbury posted a 13% revenue growth year-over-year in Q3, outperforming AutoNation's 6.9% and Lithia's 4.9% [6][8] - Asbury's profit margin stands at 3.15%, exceeding AutoNation's 2.38% despite AutoNation's larger scale [6] - Asbury trades at an 8x P/E ratio, compared to AutoNation's 12x and Lithia's 10x, reflecting its faster growth [8]

Core Insights - Lithia & Driveway (LAD) has demonstrated strong financial performance through significant share repurchases and strategic acquisitions, reflecting confidence in its profitability and cash flow generation [2][4]. Share Repurchase Program - In the latest quarter, LAD invested $274 million to repurchase nearly 875,000 shares at a weighted average price of $313, representing 3.3% of outstanding shares [1]. - Year-to-date, LAD has repurchased approximately 2.98 million shares for nearly $933 million at the same weighted average price, which accounts for 11.3% of outstanding shares, with $636 million remaining for future repurchases [2]. Strategic Acquisitions - LAD completed the acquisition of Fines Ford in the Greater Toronto Area, which is expected to increase annualized revenue by $100 million [3]. - This acquisition aligns with LAD's strategy to enhance its presence in the North American market and is expected to bring total year-to-date expected annualized revenue to $2.2 billion [4]. Company Overview - Lithia & Driveway is the largest global automotive retailer, offering a wide range of products and services throughout the vehicle ownership lifecycle, emphasizing convenience and transparency [5]. - The company aims to modernize personal transportation solutions and has a diversified business model that supports consistent and profitable growth in a large, unconsolidated industry [5].

Core Insights - Lithia Motors, Inc. (NYSE:LAD) is recognized as one of the best consumer cyclical stocks, with a significant presence in the vehicle retail market, operating 298 outlets in the US and 151 in the UK [1] - Analyst recommendations indicate a positive outlook, with 8 out of 15 analysts rating the stock as a Buy, including 4 Strong Buy ratings [1] - Evercore ISI has raised the share price target for Lithia Motors to $500 from $440, reflecting a broader positive reevaluation of the automotive sector with an expected 20% upside by 2026 [2] Company Developments - Lithia Motors announced the addition of three Hyundai dealerships, which is projected to generate $440 million in annualized revenue [3] - The company is adapting to the evolving automotive landscape, particularly regarding electric vehicles and tariffs impacting the industry [3] Management Insights - CEO Bryan DeBoer addressed the impact of tariffs, noting that Japanese and Korean manufacturers are responding positively by not raising prices, which could mitigate the effects of tariffs through improved vehicle efficiency and affordability [4]

Core Insights - Lithia Motors has seen significant interest from institutional investors, with several firms increasing their stakes in the company during the second quarter [1][8] - Analysts are optimistic about Lithia Motors, with multiple firms raising their price targets and maintaining positive ratings [2] - The company reported strong quarterly earnings, exceeding analyst expectations and showing year-over-year revenue growth [4] Institutional Investment Activity - Nisa Investment Advisors LLC increased its stake by 16.9%, owning 276 shares valued at $93,000 after purchasing 40 additional shares [1] - Assetmark Inc. raised its stake by 2.5%, now holding 1,753 shares worth $592,000 after acquiring 42 more shares [1] - Bessemer Group Inc. significantly boosted its holdings by 114.6%, now owning 88 shares valued at $29,000 after acquiring 47 shares [1] Analyst Ratings and Price Targets - Citigroup raised its price target from $385.00 to $399.00, maintaining a "buy" rating [2] - JPMorgan Chase increased its price objective from $320.00 to $350.00, giving an "overweight" rating [2] - Evercore ISI raised its price target from $440.00 to $500.00, assigning an "outperform" rating [2] Financial Performance - Lithia Motors reported an EPS of $9.50 for the quarter, surpassing the consensus estimate of $8.53 by $0.97 [4] - The company achieved revenue of $9.68 billion, exceeding expectations of $9.38 billion, with a year-over-year revenue increase of 4.9% [4] - The return on equity was reported at 13.42%, with a net margin of 2.39% [4] Dividend and Share Repurchase - Lithia Motors declared a quarterly dividend of $0.55 per share, representing an annualized dividend of $2.20 and a yield of 0.7% [5] - The company initiated a share repurchase program allowing for the buyback of $750 million in outstanding shares, indicating management's belief in the stock's undervaluation [6] Company Overview - Lithia Motors operates as an automotive retailer, with segments in Vehicle Operations and Financing Operations, providing a range of services including vehicle sales, parts, repair, and financing [9]