Cars for sale were in short supply last year amid clogged up supply chains and a shortage of computer chips. As a result, car prices rose, and auto dealers' stocks along with them. Among them is highly-ranked Lithia Motors, whose stock rose to an all-time high in mid-March 2021. It's cooled over the past year but may be prepping for a fresh run higher. On Tuesday, Lithia Motors received an upgrade to its Relative Strength (RS) Rating, from 75 to 83. Lithia Motors stock eased fractionally Tuesday.
The new 83 RS Rating means Lithia Motors stock has outperformed 83% of all stocks, regardless of industry, over the past year. It's an especially significant improvement because market research shows that the best stocks typically have an RS Rating north of 80 as they launch their biggest price moves.
Lithia Motors Stock's Other Ratings Are Outstanding
Among its other important ratings, Medford, Ore.-based Lithia Motors has a near-perfect 98 EPS Rating, of a perfect 99. Its profit growth tops that of all but 2% of companies. Additionally, Lithia Motors stock has a 95 Composite Rating.
The Composite Rating contains a mix of five other IBD stock ratings. The EPS, Relative Price Strength, Accumulation/Distribution, Sales+Margins+ROE and Industry Group Rating all come together. It combines the values of all those ratings to arrive at a single score of 1 to 99, where the best is 99.
Lithia Motors revenue grew 60% last quarter on a year-over-year basis, to $6.31 billion. The bottom line grew 109%, up from 63% in the prior report, to $11.39 per share. The prior three stanzas Lithia's EPS surged 193%, 199% and then 63%.
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The IBD 50 list stock is trying to complete a consolidation with a 418.08 buy point. See if it can break out in heavy trade.
Lithia Motors stock earns the No. 2 rank among its peers in the Retail/Wholesale-Auto Parts industry group. Asbury Automotive and Sonic Automotive are also among the group's highest-rated stocks.
As you try to find the best stocks to buy and watch, keep a close on eye on relative price strength.
This exclusive Relative Strength Rating from Investor's Business Daily measures share price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price performance over the last 52 weeks stacks up against all the other stocks in our database.
