Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Style Sc ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium includes access to the Zacks Style Scores a ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Styl ...

Company Overview - AutoNation, Inc. is one of the largest automotive retailers in the United States, offering new and used vehicles, maintenance and repair services, vehicle parts, extended service contracts, and financing options through third-party sources [12]. Investment Ratings - AutoNation has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid position in the market [12]. - The company also has a Value Style Score of A, supported by attractive valuation metrics such as a forward P/E ratio of 9.95, which is appealing to value investors [13]. Earnings Estimates - In the last 60 days, five analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.43 to $18.67 per share [13]. - AutoNation has an average earnings surprise of 1.6%, suggesting a positive outlook for its earnings performance [13]. Investment Considerations - With a strong Zacks Rank and top-tier Value and VGM Style Scores, AutoNation is recommended for investors' consideration [13].

Core Viewpoint - The Zacks Auto Retail and Wholesale industry shows robust prospects despite a challenging tariff environment, driven by a diversified product mix and multiple income streams [1] Industry Overview - The automotive sector's performance is heavily reliant on retail and wholesale networks, involving operations through dealerships and retail chains, including the sale of new and used vehicles, light trucks, auto parts, and providing repair and maintenance services [2] - The industry's success is closely tied to economic conditions, with higher disposable income leading to increased investment in big-ticket items, while tighter budgets result in reduced discretionary spending [2] - The COVID-19 pandemic has significantly reshaped the industry, increasing the focus on e-commerce [2] Factors Influencing Industry Prospects - Auto retailers benefit from a diversified product mix and multiple income streams, which reduce risk and position them for long-term growth, generating income from new and used vehicle retail, finance, insurance, and automotive repair [3] - Strategic acquisitions are being utilized by auto dealers to expand into new markets, thereby increasing market share and enhancing offerings [4] - Investment in digital platforms aligns with consumer preferences for online transactions, enabling dealers to reach a broader audience and drive higher profitability [4] Tariff Impact - A 25% tariff on imported vehicles and auto parts, imposed by the U.S. government, is expected to increase manufacturing costs and disrupt supply chains, potentially raising car prices by $5,000 to $15,000 [5] - Rising vehicle prices may lead consumers to consider used vehicles, increasing demand and prices for used cars, which could negatively impact new and used vehicle retailers' top-line growth [5] Industry Ranking and Performance - The Zacks Auto Retail & Wholesale industry ranks 46, placing it in the top 19% of around 250 Zacks industries, indicating bright near-term prospects [6][7] - The industry has outperformed the S&P 500 and the Auto, Tires, and Truck sector over the past year, returning 8.8% compared to the S&P 500's growth of 5.2% and the sector's decline of 9.8% [10] Current Valuation - The industry is currently trading at an EV/EBITDA ratio of 8.18X, significantly lower than the S&P 500's 15.58X and the sector's 14.97X [13] - Over the past five years, the industry has traded between 4.78X and 10.79X, with a median of 7.13X [14] Company Highlights - **Lithia Motors, Inc. (LAD)**: A leading automotive retailer with strategic acquisitions increasing market share and enhancing its portfolio. The company achieved a cost-saving plan of $200 million and expects an additional $50-$70 million in interest cost savings in 2025 [19][20] - **AutoNation, Inc. (AN)**: One of the largest automotive retailers, improving its finance division and after-sales gross profit margin by nearly 250 basis points since 2019. The company anticipates mid-single-digit growth in its after-sales business [23][24][25] - **Group 1 Automotive, Inc. (GPI)**: A leading automotive retailer focusing on acquisitions and restructuring to improve operational efficiency. The company expects year-over-year growth of 9.91% in sales and 4.51% in EPS for 2025 [29][30]