Markets

Sonic Automotive (SAH) Opens EchoPark Location in Houston

An image of a calculator, a smartphone and a chart on a clip board
Credit: Shutterstock photo

Sonic Automotive, Inc.SAH opened an EchoPark Automotive store at Houston, TX. The new EchoPark location is the first one in Houston and the ninth one for the company's pre-owned vehicle franchise. Addition of this location is likely to strengthen long-term relationships with its guests and the community.

Importantly, introduced in 2014, EchoPark has been successful in enhancing the customer experience in Denver, CO; Charlotte, NC; and both Dallas and San Antonio, TX. The EchoPark business model sells nearly new vehicles at 20-40% below the value of new car while also ensuring consistent vehicle quality and clean CarFax vehicle history.

Under the EchoPark segment, the company operates stand-alone pre-owned specialty retail locations. Moreover, since 2014, EchoPark has witnessed triple-digit growth. The company's EchoPark strategy to grow its pre-owned business continues. On Oct 8, 2018, Sonic Automotive opened an EchoPark store in Charlotte, NC, and indicated about this opening.

In third-quarter 2018, the company's earnings surpassed the Zacks Consensus Estimate and came in higher than the prior-year quarter. However, during the quarter, revenues lagged the Zacks Consensus Estimate and came in lower than the prior-year quarter. In the past six months, shares of Sonic Automotive have underperformed the industry it belongs to. Over this time frame, shares of the company have decreased 36.6%, whereas the industry declined 24.9%.

Currently, Sonic Automotive carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Fox Factory Holding Corp. FOXF and America's Car-Mart, Inc. CRMT . While Allison Transmission and Fox Factory currently sport a Zacks Rank #1 (Strong Buy), America's Car-Mart carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have increased 3.8%.

Fox Factory has an expected long-term growth rate of 17.9%. Over the past six months, shares of the company have risen 45.5%.

America's Car-Mart has an expected long-term growth rate of 19.5%. Over the past six months, shares of the company have grown 5%.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

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

Sonic Automotive, Inc. (SAH): Free Stock Analysis Report

America's Car-Mart, Inc. (CRMT): Free Stock Analysis Report

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

Allison Transmission Holdings, Inc. (ALSN): 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.


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

In This Story

ALSN CRMT SAH FOXF

Other Topics

Stocks