Quantcast

Lithia Motors Inks Strategic Deal With E-commerce Retailer


Shutterstock photo

Lithia Motors, Inc. LAD has inked a strategic partnership with San Francisco-based e-commerce retailer, Shift. The underlying idea is to capture majority of used vehicles - above 40 million to be specific - sold in the United States per year and use more technology for simplifying the car buying and ownership experience. Such an alliance will allow both companies to collaborate with respect to technology, inventory, data, business and physical network.

Notably, Shift is the largest used car retailer in San Francisco and operates all over California. The company is anticipated to sell around 8,000 vehicles during 2018. While leading automotive retailer Lithia Motors deals in new and used vehicles plus related services in the United States. Shift's dynamic operational capabilities and technology platform are likely to well complement Lithia Motors' culture of creating a digital marketplace as well as its timely provision of a decent retail experience to its customers.

Additionally, Lithia Motors will be the frontrunner in Shift's Series D fundraising round. The former will invest $54 million to become the latter's largest shareholder.

Over the past three months, shares of Lithia Motors have underperformed the industry it belongs to. The stock has declined 16.3%, wider than the industry's decrease of 3.8%.


Zacks Rank & Key Picks

Lithia Motors currently carries a Zacks Rank #4 (Sell).

A few better-ranked stocks in the auto space are Fox Factory Holding Corporation FOXF , AB Volvo VLVLY and PACCAR Inc. PCAR . While both Fox Factory Holding and AB Volvo sport a Zacks Rank #1 (Strong Buy), PACCAR carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Fox Factory has an expected long-term growth rate of 16.8%. Over a year, shares of the company have soared 67.7%.

AB Volvo has an expected long-term growth rate of 15%. Over the past two years, shares of the company have surged 46.6%.

PACCAR has an expected long-term growth rate of 10.8%. Shares of the company have risen 6.3% in the past six months.

Best Electric Car Stock? You'll Never Guess It.

Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!

Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.

See Zacks Best EV Stock Free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Lithia Motors, Inc. (LAD): Free Stock Analysis Report

Fox Factory Holding Corp. (FOXF): Free Stock Analysis Report

PACCAR Inc. (PCAR): Free Stock Analysis Report

AB Volvo (VLVLY): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Business , Stocks
Referenced Symbols: LAD , FOXF , PCAR , VLVLY



More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research










Research Brokers before you trade

Want to trade FX?