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Has Lithia Motors (LAD) Outpaced Other Retail-Wholesale Stocks This Year?

Zacks Equity Research

Investors focused on the Retail-Wholesale space have likely heard of Lithia Motors (LAD), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of LAD and the rest of the Retail-Wholesale group's stocks.

Lithia Motors is a member of our Retail-Wholesale group, which includes 223 different companies and currently sits at #11 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. LAD is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for LAD's full-year earnings has moved 8.85% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that LAD has returned about 52.33% since the start of the calendar year. Meanwhile, the Retail-Wholesale sector has returned an average of 10.47% on a year-to-date basis. This shows that Lithia Motors is outperforming its peers so far this year.

Looking more specifically, LAD belongs to the Automotive - Retail and Whole Sales industry, which includes 9 individual stocks and currently sits at #8 in the Zacks Industry Rank. On average, stocks in this group have gained 19.28% this year, meaning that LAD is performing better in terms of year-to-date returns.

Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to LAD as it looks to continue its solid performance.


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