Lithia Motors, Inc. shares are closing back in on major support levels around 136.13 USD based on daily price data, which could offer attractive entry points.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The close medium term support offers good timing for purchasing the stock.
● Historically, the company has been releasing figures that are above expectations.
● The company shows low valuation levels, with an enterprise value at 0.36 times its sales.
● The company's attractive earnings multiples are brought to light by a P/E ratio at 12.53 for the current year.
● Sales forecast by analysts have been recently revised upwards.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● The tendency within the weekly time frame is positive above the technical support level at 117.03 USD
Weaknesses
● Low profitability weakens the company.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
Lithia Motors, Inc. is a global automotive retailer. The Company is engaged in providing an array of products and services throughout the vehicle ownership lifecycle. The Company offers convenient experiences through its comprehensive network of physical locations, e-commerce platforms, captive finance solutions and other synergistic adjacencies. The Company operates through two segments: Vehicle Operations and Financing Operations. Its Vehicle Operations consist of all aspects of its auto merchandising and service operations, including its retail automotive, recreational vehicles, and motorcycle franchises that sell new vehicles, used vehicles, parts, repair and maintenance services, and vehicle finance and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles from its Vehicle Operations. The Company operates approximately 482 locations representing 51 brands across the United States, United Kingdom, and Canada.