8 Best Car Repair Stocks to Invest In

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

Number of Hedge Fund Holders: 43

Lithia Motors, Inc. (NYSE:LAD) is a major automotive retailer that operates a vast network of dealerships and online platforms to sell vehicles and provide related services, including repair services. It operates more than 467 stores across the United States, Canada, and the United Kingdom.

The company has been actively expanding its dealership network and improving its financial performance. On September 10, it announced the acquisition of three dealerships from Duval Motor Company in Florida. Management expects to generate over $200 million in annual revenue from the acquisition, significantly enhancing the company’s presence in the region. For the fiscal third quarter of 2024, Lithia Motors, Inc. (NYSE:LAD) reported record revenues of $9.2 billion, which is an 11% increase from $8.3 billion in the same quarter of 2023. This growth reflects the company’s successful strategies in expanding its operations.

Management is not only expanding its dealership footprint through strategic acquisitions but is also enhancing its financial health by increasing revenues and improving cost management. It successfully reduced its SG&A expenses from 67.9% of gross profit in the second quarter to 66% in the third quarter of 2024. It is one of the best car repair stocks to invest in.

Appalaches Capital stated the following regarding Lithia Motors, Inc. (NYSE:LAD)  in its Q3 2024 investor letter:

“Lithia Motors, Inc. (NYSE:LAD) 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.”