10 Best Car Stocks To Invest In Now

6. Lithia Motors, Inc. (NYSE:LAD)

Number of Hedge Fund Holders: 43

Lithia Motors, Inc. (NYSE:LAD) is an American automotive dealership that provides a range of products and services throughout the life of a vehicle. It operates through two segments: Vehicle Operations and Financing Operations. The company has a presence in 473 locations, representing 52 brands across the US, UK, and Canada.

On October 23, LAD announced financial results for the third quarter of fiscal 2023. Revenue for the quarter was posted at $9.2 billion, up 11% year-over-year. This was the highest third-quarter revenue in the company’s history. Diluted earnings per share were logged at $8.21.

Lithia Motors, Inc. (NYSE:LAD) also achieved $200 million in annualized cost savings, driven primarily by personnel-related reductions. The company stated that it sees further opportunities ahead to improve its cost structure and will be looking to eliminate an additional $100 million in costs in 2025.

In 2024, LAD welcomed several new acquisitions that have contributed nearly $6 billion in year-to-date revenue. During the quarter, the company acquired three stores from Duval Motor Company in Jacksonville and Gainesville, marking its expansion into new Florida markets. Collectively, these acquisitions are expected to generate $200 million in annualized revenue for Lithia Motors, Inc. (NYSE:LAD).

Investor sentiment around the stock continues to improve. According to Insider Monkey’s database for Q3 2024, 43 hedge funds held investments in the company, up from 35 at the end of the second quarter. Appalaches Capital stated the following regarding Lithia Motors, Inc. (NYSE:LAD) in its Q3 2024 investor letter:

Lithia Motors, Inc. reported earnings, which were expectedly weaker year-over-year, but results were still better than feared. The shares have run up quite a bit since our initial purchase, but we still own them at a price at which I believe is a significant discount to their intrinsic value.

Wall Street analysts are also bullish on LAD, with a consensus Buy rating. It is one of the best car stocks to invest in now.