Stock Story -
What Happened:Shares of automotive retailer Lithia Motors (NYSE:LAD) jumped 10.4% in the morning session after the company reported second quarter earnings results that beat analysts' EPS expectations. Its gross margin also outperformed Wall Street's estimates. On the other hand, its revenue slightly missed. Regardless, management remained optimistic with the company acquiring new stores to improve the brand's reach. This has driven over $5.6 billion in annualized revenues year till date. Overall, this quarter seemed fairly positive and shareholders should feel optimistic.
Is now the time to buy Lithia? Find out by reading the original article on StockStory, it's free.
What is the market telling us:Lithia's shares are somewhat volatile and over the last year have had 10 moves greater than 5%. But moves this big are very rare even for Lithia and that is indicating to us that this news had a significant impact on the market's perception of the business.
Lithia is down 9.1% since the beginning of the year, and at $295.43 per share it is trading 10.3% below its 52-week high of $329.28 from December 2023. Investors who bought $1,000 worth of Lithia's shares 5 years ago would now be looking at an investment worth $2,290.
