Lithia Motors comes back upon contact with important technical levels that might give impetus to a rebound.

In terms of valuation, the enterprise value represent 0.31x the sales, corresponding to an attractive valuation. Moreover, at current prices, the security is trading 11.45x the EPS and has a great reevaluation potential.

Technically, the security is in a consolidation area limited by the significant 77.35 support and the positive trendline. Above the lower limit, investors could aim a rebound toward the USD 85.35 resistance area.

As a result, active investors can open immediately a long trade in Lithia Motors thanks to the close proximity of the USD 77.35 support area. The target price is USD 85.35. If there is a breakdown of the USD 77.35 support, investors should close their trades.