Yahoo Finance·2025-11-18 11:06Group 1 - Group 1 operates extensively across the U.S., with a strong presence in the Northeast, Southeast, Texas, and California, and is the 1 auto retailer in Texas [1] - The company has 324 new vehicle franchises and 259 franchised new vehicle dealerships, generating $19.9 billion in revenue last year [3] - Group 1 is a leader in the aftermarket sales segment, successfully adapting to the complexities of modern vehicles, including electric vehicles [2] Group 2 - The U.S. auto dealer market is valued at approximately $2.95 trillion and is projected to reach $3.68 trillion by 2030, reflecting a CAGR of about 4.5% [6] - The demand for personal vehicles remains strong, supporting a steadily expanding automotive dealership industry [7] Group 3 - In Q3 2025, Group 1 reported record revenues of $5.8 billion, a 10% year-over-year increase, and a non-GAAP EPS of $10.45, up 5.6% year-over-year [9] - Analyst Babcock sees Group 1 as having significant growth potential, trading at 8.8x forward P/E, below the dealer average, with a price target of $510, suggesting a 30% gain [10] Group 4 - Lithia Motors, another major player, has 450 dealer locations and reported Q3 revenue of $9.7 billion, up 5% year-over-year [14] - Lithia's strategic goal includes expanding luxury car services, recently acquiring two luxury dealerships generating $450 million in annual revenue [13] Group 5 - AutoNation operates 323 dealer locations and reported Q3 revenue of $7.01 billion, a 7% year-over-year increase [19] - Analyst Babcock highlights AutoNation's consistent operating performance and favorable valuation, setting a price target of $250, indicating a 27% potential gain [20]