10 Best Mid Cap Value Stocks To Invest In

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

Number of Hedge Fund Holders: 35

Market Capitalization as of October 28, 2024: $9.06 Billion

Forward P/E as of October 28, 2024: 11.3

Lithia Motors, Inc. (NYSE:LAD) ranks fifth on our list of the best mid-cap value stocks to invest in. The automotive dealership company has more than 101,000 vehicles across 300 locations in the US, over 1,000 vehicles in 15 locations in Canada, and more than 4,000 vehicles in 151 locations in the United Kingdom.

Home to more than 51 brands, the company is regarded as one of the fastest-growing companies in the United States. In the third quarter of 2023, Lithia Motors, Inc. (NYSE:LAD) logged the highest third-quarter revenue in company history, at $9.2 billion, up by 11% year-over-year. In addition to that, the company generated $223 million in net income during the same quarter.

In Q3 2024, Lithia Motors, Inc. (NYSE:LAD) initiated multiple store acquisitions to align with its expansion goals. The company completed acquisitions of three stores from the Duval Motor Company in Jacksonville and Gainesville, Florida. The acquisitions will help Lithia Motors expand its footprint in the import and luxury segments and increase its overall geographic coverage.

Overall, Lithia Motors, Inc. (NYSE:LAD) is a popular choice among investors, explaining why 35 hedge funds were bullish on the stock at the close of Q2 2024. In addition to that, the company is also pretty liquid, as it ended the third quarter with more than $1.1 billion in cash and cash equivalents. Analysts are also bullish on the stock and their median price target of $380 points to an upside of 11% from current levels.

Madison Investments Madison Mid Cap Fund stated the following regarding Lithia Motors, Inc. (NYSE:LAD) in its Q3 2024 investor letter:

“During the quarter we added three new holdings: Graco, Lithia Motors, Inc. (NYSE:LAD), and Asbury Automotive. We purchased shares in Lithia Motors and Asbury Automotive, two of the largest auto franchise dealer groups in the country, owning a diversified portfolio of dealerships ranging from Toyota to Ford to Mercedes. Investors tend to pay a lot of attention to the level of new car sales, but dealers actually earn more in profits from parts and service than they do from selling new cars, and this steady business provides a nice ballast throughout the economic cycle. In addition, we believe these businesses have a long runway to create value via consolidation of this fragmented industry, as the advantages of scale are increasing.”