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%.
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