Lithia Motors, Inc.

LAD
Delayed Nyse - 01/17 10:02:00 pm
143.39USD
+1.48%

Lithia Motors, Inc. : A medium term support level to take advantage of

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Marie-Léa Laignel
Data Analyst

Strategy published on : 01/14/2020 | 09:05

long trade
Live

Entry price : 142.38$
Target : 155$
Stop-loss : 137$
Potential : 8.86%

Lithia Motors, Inc. shares are closing back in on major support levels around 136.13 USD based on daily price data, which could offer attractive entry points.
Investors have an opportunity to buy the stock and target the $ 155.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The close medium term support offers good timing for purchasing the stock.

● Historically, the company has been releasing figures that are above expectations.

● The company shows low valuation levels, with an enterprise value at 0.36 times its sales.

● The company's attractive earnings multiples are brought to light by a P/E ratio at 12.53 for the current year.

● Sales forecast by analysts have been recently revised upwards.

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.

● The tendency within the weekly time frame is positive above the technical support level at 117.03 USD


Weaknesses

● Low profitability weakens the company.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

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