Core Viewpoint - Lithia Motors, Inc. (NYSE:LAD) is identified as an undervalued cyclical stock with positive ratings from Benchmark and Evercore ISI, indicating potential investment opportunities [1][2]. Group 1: Analyst Ratings and Price Targets - Benchmark has reiterated a Buy rating on Lithia Motors with a price target of $400 [1]. - Evercore ISI has also maintained a Buy rating, setting a higher price target of $500 [1]. Group 2: Performance Forecasts - Benchmark's updated forecasts indicate a reduction in production volumes and gross profit per unit, expecting a deleveraging to 67% of sales for Lithia Motors [2]. - The firm anticipates Lithia Motors to generate $409 million in EBITDA for the fourth quarter, with an adjusted EPS of $8.21 [2]. - Evercore ISI expects the company to perform in line with market expectations during the fiscal fourth quarter, with projected revenue of approximately $9.30 billion and a GAAP EPS of $8.41 [3]. Group 3: Company Overview - Lithia Motors is the largest auto dealer in the United States, involved in the retail of new and used vehicles along with related services [4].

Company Overview - Lithia Motors, Inc. is a leading automotive retailer in the United States, offering 52 vehicle brands across 459 locations in the U.S., U.K., and Canada as of December 31, 2024 [11]. Investment Ratings - Lithia Motors has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid position in the market [11]. - The company has a Momentum Style Score of B, with shares increasing by 13.7% over the past four weeks [12]. Earnings Estimates - For fiscal 2025, three analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.84 to $35.62 per share [12]. - Lithia Motors has an average earnings surprise of +6.5%, suggesting a positive trend in earnings performance [12].

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify securities likely to outperform the market in the short term [2][3] Value Score - The Value Style Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Style Score focuses on a company's future prospects and financial health, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends by analyzing factors like one-week price changes and monthly earnings estimate changes, indicating optimal times to invest in high-momentum stocks [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator that evaluates stocks based on their value, growth, and momentum characteristics [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [7][8] Stock to Watch: Lithia Motors - Lithia Motors, Inc. is a leading automotive retailer in the U.S., offering 52 vehicle brands across 459 locations in the U.S., U.K., and Canada, currently holding a 3 (Hold) Zacks Rank with a VGM Score of A [11] Performance Metrics - Lithia Motors has a Momentum Style Score of B, with shares increasing by 7% over the past four weeks, and three analysts have raised their earnings estimates for fiscal 2025, with the Zacks Consensus Estimate rising by $1.22 to $35.24 per share [12]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank [3] - Stocks are rated from A to F, with A indicating the highest potential for market outperformance [4] Value Score - The Value Style Score focuses on identifying undervalued stocks using metrics like P/E, PEG, and Price/Sales ratios [4] Growth Score - The Growth Style Score assesses a company's financial health and future outlook through projected earnings and sales [5] Momentum Score - The Momentum Style Score identifies optimal entry points based on price trends and earnings estimate changes [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection [7] Zacks Rank - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks averaging a +23.62% annual return since 1988 [8][9] - There are over 800 top-rated stocks available, making selection challenging for investors [9] Stock Selection Strategy - 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 with a 3 (Hold) rank should also have A or B Scores to maximize upside potential [10] Company Spotlight: Lithia Motors - Lithia Motors, Inc. is a leading automotive retailer in the U.S., offering 52 vehicle brands across 459 locations [12] - Currently rated 3 (Hold) with a VGM Score of A and a Value Style Score of A, indicating attractive valuation metrics [12][13] - The company has seen upward revisions in earnings estimates, with a Zacks Consensus Estimate of $33.67 per share for fiscal 2025 [13]