Here is Why Growth Investors Should Buy Sonic Automotive (SAH) Now

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Sonic Automotive identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Group 1: Earnings Growth - Sonic Automotive's projected EPS growth for the current year is 28.7%, significantly higher than the industry average of 8.4% [5]. - The historical EPS growth rate for Sonic Automotive stands at 4%, but the focus should be on the projected growth which indicates strong future prospects [5][4]. Group 2: Asset Utilization Ratio - The asset utilization ratio for Sonic Automotive is 2.51, indicating that the company generates $2.51 in sales for every dollar in assets, outperforming the industry average of 1.65 [7]. - The company's sales are expected to grow by 4.3% this year, compared to the industry average of 3%, highlighting its efficiency in sales growth [7]. Group 3: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Sonic Automotive, with the Zacks Consensus Estimate for the current year increasing by 1.3% over the past month [8]. - This trend in earnings estimate revisions is correlated with near-term stock price movements, suggesting potential for stock price appreciation [8]. Group 4: Overall Assessment - Sonic Automotive has achieved a Growth Score of B and holds a Zacks Rank of 2, indicating it is a solid choice for growth investors [10].