Lack of semiconductors along with delays in production during the COVID epidemic have led to serious damage to the automotive market.
The declining supply of vehicles has raised prices, forcing many Americans to give up buying a new vehicle.
Things are starting to change:
The chart above shows the change over time in the prices of new vehicles (orange line) and used (green line) according to the consumer price index.
Used car and truck prices Decreased 3.8% From February 2022 to March 2022, while new car prices remained constant.
This is great news for people in the market of a car or truck.
Today’s Power Stock is a major US car retailer: AutoNation Inc. (Symbol: AN).
AutoNation Inc. Operates 339 franchises of new vehicles in the United States
It sells local, imported and premium vehicles. It also organizes funding through third-party sources.
AutoNation shares earn “Strong Bulls” rating 90 out of 100 On our stock power rating system, and we expect it to beat the broad market 3 times in the next 12 months.
AN Stock: High value with excellent growth
Over the last quarter, AN has released solid numbers. Here’s what stood out to me:
- The company posted quarterly revenue of $ 6.8 billion, thanks to A 47% increase in used car sales Over the same quarter a year ago!
- Its quarterly earnings per share of $ 5.78 is a A jump of 103%. From the first quarter of 2021.
As you can see, the company’s strong growth numbers back it up 90 Ranking on the index.
But AN shines on value.
The price-to-earnings ratio of 0.28 is much lower than the average in the automotive retail industry which stands at 1.21 – meaning AN is a better deal than its peers.
In the last 12 months, AN has risen by 19.6%. However, having reached the low of 2022 in April, The stock recovered 21.8%.
It also blows the doors out of the rest of the automotive retail industry, viz 6% decrease during the last year.
AutoNation Inc Stock Scores 90 in total On our proprietary stock rating system.
That means we are “strong bulls” and expect it to beat the broad market At least three times in the next 12 months.
With the prices of new and used vehicles starting to drop, more Americans tend to start buying cars again.
AutoNation is in a perfect position to help these people find the vehicle they want – and help smart investors make a profit!
Stay tuned: Top Aircraft Maintenance Co.
Remember: We are advertising Daily Stock Power Five days a week to give you access to the top companies our proprietary stock rating recognizes!
Stay tuned for the next issue, where I will share all the details about an aircraft maintenance provider I know you will want to hear about.
Matt Clark, CMSA®
Researcher, Money and Markets Analyst
post Scriptum There is a comment about Daily Stock Power? Reach my team and me at any time b Feedback@MoneyandMarkets.com.
AN Stock: As Car Prices Fall, AutoNation Stock to Rise Source link AN Stock: As Car Prices Fall, AutoNation Stock to Rise