Stock Price & Analysis

Analysis and Insights

Technical Analysis:

LAD's stock has recently crossed below its 200-day moving average, a bearish signal. The stock is trading at $313.60, with a 52-week range of $243 to $405.67. This indicates some volatility, and the current price is near the lower end of the range.

Fundamental Analysis:

LAD has made a significant acquisition of Elk Grove Subaru, expected to add $100 million in annual revenue. They've also increased their share buyback program by $350 million, signaling confidence in their stock. These are positive signs as they suggest the company is investing in growth and returning value to shareholders.

Valuation Analysis:

LAD's valuation metrics show a P/E ratio of 35.64 and an EV/EBITDA of 15.30. This suggests the stock might be overvalued compared to industry peers.

Analyst Sentiment:

Analysts have mixed opinions. Some have raised their price targets, like JP Morgan to $420, while Wells Fargo is more cautious with a $397 target. The average price target is around $400, which is higher than the current price, suggesting potential upside.

Conclusion:

Given the moving average crossover and RSI, there might be a short-term rebound. The company's fundamentals, like the acquisition and buybacks, support a positive outlook. However, the overall market sentiment and the stock's technical indicators need to be monitored.

LAD stock is predicted to reach $350 by year-end 2025, driven by strong Q4 earnings and strategic acquisitions. The stock is currently undervalued with RSI near oversold levels, suggesting a potential rebound. Analysts maintain a $400 price target, indicating significant upside potential.

The S1 support level for LAD Stock is $286.57 ,The R1 resistant level for LAD Stock is $315.02.

As of the end of day on 2025-03-19, the price of LAD Stock was $300.19.

The target price for LAD Stock according to analyst rating is 412.38, with the highest price target at 460.00 and the lowest at 385.00. Analysts have a Strong Buy rating on LAD Stock overall.

The market cap of LAD is $7.8B.

Lithia Motors (LAD) appears undervalued based on its current valuation metrics and financial performance. The stock has a P/E ratio of 12.08 and an EV/EBITDA of 8.16, both of which are reasonable and not indicative of overvaluation. The price-to-sales ratio is 0.66, suggesting undervaluation relative to revenue, and the price-to-book ratio is 1.17, indicating the stock is fairly valued relative to book value. The company has demonstrated strong financial performance with increasing revenue and net income, stable margins, and a solid return on equity. Additionally, LAD has been actively repurchasing shares and making strategic acquisitions, which are positive signs. Analysts have a strong buy rating with price targets significantly higher than the current stock price, further supporting the view that LAD is not overvalued.

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 344 locations representing 47 brands across the United States, United Kingdom, and Canada.

LAD stock is predicted to reach $450 by 2030, driven by its strong financial performance and strategic acquisitions. The company's recent acquisition of Elk Grove Subaru and increased share buybacks position it for sustained growth.

LAD has a total of 27446 employees.