Core Viewpoint - AutoNation, Inc. is expected to release its quarterly earnings on February 6, 2026, with Wall Street estimating an EPS of $4.91 and projected revenue of approximately $7.21 billion, despite anticipated year-over-year declines in earnings due to lower revenues for the quarter ending December 2025 [1][2] Financial Metrics - The company's price-to-earnings (P/E) ratio is approximately 12.20, indicating how the market values its earnings [3] - AutoNation's price-to-sales ratio is about 0.28, reflecting its market value relative to sales [3] - The enterprise value to sales ratio is approximately 0.62, while the enterprise value to operating cash flow ratio is notably high at around 156.70, indicating the company's valuation in relation to its cash flow from operations [4] - The earnings yield is approximately 8.20%, providing insight into the return on investment for shareholders [4] Leverage and Liquidity - AutoNation's debt-to-equity ratio is quite high at about 3.90, suggesting a heavy reliance on debt to finance operations [5] - The current ratio is approximately 0.79, indicating the company's ability to cover short-term liabilities with short-term assets [5]

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AutoNation Inc. (NYSE:AN) is one of the best used-car stocks to buy, according to hedge funds. On January 16, JPMorgan upgraded AutoNation Inc. (NYSE:AN) to an Overweight from Neutral and set a $235 price target. AutoNation, Inc. (AN) Draws Investor Attention Amid Strategic Growth and Analyst Optimism The price target hike underscores JPMorgan’s confidence that the company has the most visible earnings-revision trajectory among its peers in the auto retail sector. The investment bank has also touted the ...

Core Viewpoint - The Zacks Auto Retail and Wholesale industry is experiencing a mixed operating environment, with challenges such as slowing vehicle sales, high borrowing costs, and affordability constraints, while some companies are positioned to outperform through strategic acquisitions and digital initiatives [1] Industry Overview - The auto retail and wholesale industry is crucial for delivering vehicles and parts to consumers, operating through dealership networks and retail chains [2] - The industry's performance is closely tied to economic conditions, with consumer spending on vehicles typically increasing during economic growth and declining during downturns [2] - The COVID-19 pandemic has accelerated the shift towards online tools and e-commerce, a trend expected to continue [2] Factors Shaping Industry Dynamics - U.S. vehicle sales are projected to decline, with total new vehicle sales expected to be around 15.8 million units in 2026, a 2.4% year-over-year decrease, and new retail sales likely to fall 1.5% to 13.1 million units [3] - High interest rates, reduced manufacturer incentives, and tight household budgets are negatively impacting demand, while average new car prices are around $50,000 [3] - The EV market is facing uncertainty due to the loss of federal tax incentives, leading automakers to reduce EV investments and focus on gas and hybrid models [4] Strategic Buyouts - Auto retailers are actively pursuing acquisitions to expand their market reach and enhance competitive positioning, which helps diversify brand portfolios and improve operational efficiencies [5] Digitization - Dealers are investing in digital platforms to enhance customer experience, with tools like virtual showrooms and online pricing improving transparency and engagement [6] Capital Allocation - Many auto retailers are focusing on shareholder returns through share buybacks and dividend increases, supported by strong cash flow from disciplined acquisitions and cost-control initiatives [7] Industry Rank - The Zacks Auto Retail & Wholesale industry holds a Zacks Industry Rank of 89, placing it in the top 36% of nearly 245 Zacks industries, indicating strong near-term prospects [9][10] Stock Performance - The industry has underperformed compared to the S&P 500 and the Auto, Tires, and Truck sector over the past year, declining more than 1% while the S&P 500 and sector grew by 18% and 12%, respectively [12] Valuation - The industry is currently trading at an EV/EBITDA ratio of 8.36X, significantly lower than the S&P 500's 18.68X and the sector's 26.92X [15] Company Highlights - **AutoNation**: A leading automotive retailer expanding through acquisitions, with recent additions expected to generate significant annual revenues. The company is also enhancing its digital capabilities and prioritizing shareholder returns with a $1 billion share repurchase plan [19][20][21] - **Asbury Automotive Group**: A diversified auto retailer benefiting from multiple income streams and strategic acquisitions, with a focus on digitization through its Clicklane platform. The company is also expanding into higher-margin segments and reporting improved productivity from new technology [24][25][26]

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]

Group 1 - The automotive industry is making significant decisions regarding electric vehicles (EVs) and U.S. production capacity in response to tariffs [1] - AutoNation, a leading vehicle retailer, recently acquired a Toyota franchise for approximately $120 million, marking its first such move in a decade [2] - This acquisition signals a potential shift in Toyota's strategy towards EVs, as the company has focused more on hybrids rather than fully electric vehicles [3][6] Group 2 - Toyota's Chairman Akio Toyoda has expressed skepticism about the future dominance of EVs, predicting that their global market share may peak at 30% [4] - The company is implementing a "multi-pathway" strategy, emphasizing hybrids as a more balanced approach compared to the industry's push for full electrification [4] - Toyota plans to offer hybrid options for nearly all models in its U.S. lineup by the end of the decade, with popular models like the Camry and RAV4 already featuring hybrid variants [5]

Core Insights - AutoNation, Inc. has acquired Jerry's Toyota, renaming it AutoNation Toyota White Marsh, effective December 8, 2025, marking its first Toyota dealership in Maryland and its 20th nationwide [1][2]. Group 1: Acquisition Details - The acquisition is expected to generate approximately $123 million in annual revenue and includes 2,600 retail new and used vehicle sales annually [2]. - With this acquisition, AutoNation expands its presence in Maryland to 18 locations, which includes 9 premium luxury stores, 3 domestic stores, 3 import stores, and 3 collision centers [2]. Group 2: Strategic Importance - The addition of AutoNation Toyota White Marsh aligns with the company's strategy to enhance its brand portfolio in key markets and create shareholder value [3]. - The acquisition will also bring in 110 new associates, contributing to improved customer service and value delivery [3]. Group 3: Company Overview - AutoNation is one of the largest automotive retailers in the U.S., offering a wide range of new and used vehicles, financing, parts, and maintenance services [3]. - The company has raised over $45 million for cancer-related causes, reflecting its commitment to community engagement and social responsibility [3].

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Core Insights - AutoNation, Inc. has acquired Jerry's Toyota, a prominent dealership in the Mid-Atlantic region, marking a significant expansion for AutoNation [1][2][4] Company Overview - Dave Cantin Group (DCG) is a leading mergers and acquisitions advisory firm specializing in the automotive sector, advising on approximately 40 transactions annually [5] - DCG's advisory approach focuses on long-term client relationships and market intelligence tools to inform client strategies [5][6] Transaction Details - The acquisition of Jerry's Toyota is part of a multi-generational succession plan for the Stautberg family, ensuring continuity for customers and employees [2][3] - The terms of the transaction have not been disclosed, but it is noted as AutoNation's first Toyota acquisition in over a decade [4] Market Context - The Baltimore-Washington corridor is highlighted as a high-performing Toyota region in the U.S., characterized by strong brand loyalty and sustained retail demand [4]