Lithia Motors (LAD) Stock Moves -1.3%: What You Should Know

In the latest trading session, Lithia Motors (LAD) closed at $225.53, marking a -1.3% move from the previous day. This change was narrower than the S&P 500's daily loss of 2.37%. At the same time, the Dow lost 1.92%, and the tech-heavy Nasdaq lost 3.02%.

Coming into today, shares of the auto dealership chain had lost 14.34% in the past month. In that same time, the Retail-Wholesale sector lost 1.36%, while the S&P 500 lost 2.31%.

LAD will be looking to display strength as it nears its next earnings release. In that report, analysts expect LAD to post earnings of $4.05 per share. This would mark year-over-year growth of 19.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.48 billion, up 4.53% from the year-ago period.

LAD's full-year Zacks Consensus Estimates are calling for earnings of $13.82 per share and revenue of $12.53 billion. These results would represent year-over-year changes of +17.52% and -1.13%, respectively.

Investors should also note any recent changes to analyst estimates for LAD. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.17% higher. LAD is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, LAD is currently trading at a Forward P/E ratio of 16.53. This valuation marks a premium compared to its industry's average Forward P/E of 11.27.

The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 2, putting it in the top 1% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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

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