From Yahoo Finance: 2025-05-10 13:21:00

Lithia Motors, Inc. (LAD) is a top auto stock with a share price of $295.94 on May 7th, traded with P/E ratios of 9.34 (trailing) and 8.51 (forward). The company is the largest auto retailer in North America with 500 locations and has compounded returns at 13.5% annually since its IPO in 1996.

Lithia Motors generates 65% of its gross profit from high-margin services like parts and financing. Their acquisition model focuses on rural dealerships, with acquisitions done at attractive multiples to maintain strong returns on invested capital. Despite risks like online car marketplaces and the rise of electric vehicles, the company offers a compelling long-term investment opportunity.

Lithia Motors, Inc. (LAD) is not among the 30 Most Popular Stocks Among Hedge Funds, but 45 hedge fund portfolios held LAD at the end of the fourth quarter. The company shows resilience in past downturns and presents an asymmetric risk/reward profile due to its cash-generative business model and advantageous acquisition strategy.



Read more at Yahoo Finance: Lithia Motors, Inc. (LAD): A Bull Case Theory