The technical chart pattern of Lithia Motors, Inc. shares shows signs of a medium term reversal, which speaks in favor of opening new long positions. Investors have an opportunity to buy the stock and target the $ 370.
The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
The company presents an interesting fundamental situation from a short-term investment perspective.
Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
With regards to fundamentals, the enterprise value to sales ratio is at 0.56 for the current period. Therefore, the company is undervalued.
Over the past year, analysts have regularly revised upwards their sales forecast for the company.
Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
Analysts covering this company mostly recommend stock overweighting or purchase.
The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Historically, the company has been releasing figures that are above expectations.
As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
The company is not the most generous with respect to shareholders' compensation.
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