Forecasting The Future: 6 Analyst Projections For AutoNation

In the latest quarter, 6 analysts provided ratings for AutoNation AN, showcasing a mix of bullish and bearish perspectives.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $172.5, with a high estimate of $215.00 and a low estimate of $140.00. Witnessing a positive shift, the current average has risen by 7.14% from the previous average price target of $161.00.

Deciphering Analyst Ratings: An In-Depth Analysis

A clear picture of AutoNation's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to AutoNation. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of AutoNation compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of AutoNation's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into AutoNation's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on AutoNation analyst ratings.

All You Need to Know About AutoNation

AutoNation is the second largest automotive dealer in the United States, with 2023 revenue of about $27 billion and over 250 dealerships, plus 53 collision centers. The firm also has 23 AutoNation USA used-vehicle stores, a captive lender, four auction sites, and three parts distributors all across 21 states primarily in Sunbelt metropolitan areas. New-vehicle sales account for nearly half of revenue; the company also sells used vehicles, parts, and repair services as well as auto financing. The company (formerly Republic Industries) spun off its waste management unit (Republic Services) in 1999 and its car rental businesses (ANC Rental) in 2000. Wayne Huizenga founded the company in the 1990s to bring the rollup acquisition strategy to auto retailing, which has proved to be a smart move.

Financial Milestones: AutoNation's Journey

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: AutoNation's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 1.36%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: AutoNation's net margin is impressive, surpassing industry averages. With a net margin of 2.93%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 8.32%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.58%, the company showcases effective utilization of assets.

Debt Management: AutoNation's debt-to-equity ratio is below the industry average. With a ratio of 3.34, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.