Shares of auto dealer chain AutoNation recently touched a fresh high on hopes for rising sales amid major C suite changes. AutoNation shares also got a rating upgrade Wednesday as its Relative Strength (RS) Rating climbed up to a new percentile, with a rise from 71 to 82.
The upgraded 82 RS Rating puts AutoNation stock in the top 18% of stocks for price appreciation over the past year. Market research shows that the best-performing stocks often have an RS Rating over 80 in the early stages of their moves. AutoNation just raced into that elite group.
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AutoNation Stock Hovers Near High
The auto dealer chain's shares shot up about 67% from a 94.92 intraday low on Oct. 20 to hit an all-time high 158.30 on Feb. 27 on a better-than-expected earnings report. The Fort Lauderdale, Fla.-based company's stock is working on a consolidation with a 158.40 entry. See if the stock can clear the breakout price in volume at least 40% above average. After its fresh high in February it consolidated, though it hasn't fallen far below the high. On Wednesday afternoon AutoNation stock was down fractionally to just over 136.
AutoNation operates 343 dealerships nationwide, selling both new and used cars, along with offering auto financing and servicing.
On May 16, the company named Thomas Szlosek CFO, replacing Joseph Lower. Szlosek will assume the post on Aug. 7. Outgoing CFO Lower will move to a newly created position, the company said in the news release, "overseeing all business transformation initiatives for the company." Additionally, on May 1 the company named Richard Lennox as its chief marketing officer. Current CMO Marc Cannon will "transition into a new role focused on corporate responsibility," AutoNation said, and will retire at the end of the year.
Mild Profit Gain After Strong Earnings
AutoNation posted mild 5% year-over-year earnings growth in its first quarter earnings report on April 20, to $6.05 per share. That came on the heels of 34%, 17% and 11% earnings growth the three preceding quarters. Investors will watch for a turnaround to the upside in profit growth on its next report. Sales fell 5% last quarter to $6.399 billion.
AutoNation stock holds the No. 8 rank among its peers in the Retail/Wholesale-Auto Parts industry group. Digital marketplace provider ACV Auctions and Houston-based auto dealership operator Group 1 Automotive are among the group's highest-rated stocks.
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