Core Viewpoint - Lithia Motors (LAD) is expected to report a year-over-year increase in earnings and revenues for the quarter ended September 2025, with the actual results being crucial for the stock's near-term price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to show quarterly earnings of $8.84 per share, reflecting a +7.7% change year-over-year, and revenues of $9.67 billion, which is a 4.9% increase from the previous year [3]. - The consensus EPS estimate has been revised 0.06% higher in the last 30 days, indicating a slight positive adjustment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Lithia Motors is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.14%, indicating a bearish outlook from analysts [12]. - The stock currently holds a Zacks Rank of 3, making it challenging to predict a beat on the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Lithia Motors exceeded the expected earnings of $9.78 per share by delivering $10.24, resulting in a surprise of +4.70% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - While Lithia Motors may not be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [17].

Core Insights - The article emphasizes the importance of utilizing Zacks Premium for investors to enhance their stock market strategies and confidence in investing [1] Zacks Style Scores Overview - Zacks Style Scores are designed to assist investors in selecting stocks with the highest potential to outperform the market within a 30-day timeframe, using an alphabetic rating system from A to F [2] - Stocks rated A have the best chance of outperforming, while those rated F have the least potential [2] Categories of Style Scores - **Value Score**: Focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] - **Growth Score**: Evaluates stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [4] - **Momentum Score**: Targets stocks experiencing upward or downward trends in price or earnings, using metrics like one-week price change and monthly earnings estimate changes [5] - **VGM Score**: A composite score that combines Value, Growth, and Momentum Scores, providing a comprehensive view of a stock's attractiveness [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, which can be overwhelming for investors [9] Investment Strategy Recommendations - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks rated 3 (Hold) should also have Style Scores of A or B to maximize upside potential [10] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines [11] Company Spotlight: Penske Automotive Group (PAG) - Penske Automotive Group operates automotive and commercial truck dealerships across multiple countries and employs over 28,900 people globally [12] - PAG holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A and a Momentum Style Score of A, indicating potential for momentum investors [13] - The company has seen a 2.5% increase in shares over the past four weeks, with positive earnings estimate revisions for fiscal 2025 [13] - With a solid Zacks Rank and strong Style Scores, PAG is recommended for investors' consideration [14]