From Nasdaq: 2024-05-20 06:30:00

Earlier this month, Apple announced a $110 billion stock buyback, raising questions about operational challenges. AutoNation has seen a 28% rise in shares due to aggressive buybacks, with a $1 billion buyback authorization announced in their latest earnings call. The tough economy has caused challenges for AutoNation, with revenue and profit margins impacted.

High inflation and interest rates have made for a challenging selling environment, impacting AutoNation’s revenue and gross profit. Despite these challenges, same-store vehicle sales under $20,000 have increased by 5% year over year. AutoNation’s forward P/E ratio is in line with competitors, making it a possible turnaround opportunity for investors in the long term.

Investors might want to consider buying shares in AutoNation, as the company navigates a tough economic landscape and continues buying back stock. The Motley Fool Stock Advisor team has identified promising stocks for future growth, although AutoNation was not among them. Remember past stock picks like Nvidia that have produced significant returns over time with the Stock Advisor service.



Read more at Nasdaq: Forget Apple: This Other Buyback Stock Soared 28% Over the Last Year, and Could Be Headed Even Higher