AutoNation Inc AN shares are trading higher by 1.9% to $155.58 going into the close of Monday's session. Shares of used car retailers have been volatile in recent sessions. amid the UAW launching a historic simultaneous strike.
A strike could impact vehicle production at large automakers and potentially drive used car prices higher.
Why It Matters
During a UAW strike, production of new vehicles may be disrupted or delayed. As a result, consumers who were planning to buy new cars may turn to the used car market as an alternative. This increased demand for used cars could benefit AutoNation, potentially driving up sales and revenues, which could lead to a rise in its stock price.
When new car prices rise due to a strike-related supply shortage, some consumers may opt for more affordable used cars instead. AutoNation's online platform offers a range of used vehicles at various price points, making it an attractive option for price-sensitive consumers during a strike.
As this labor dispute takes center stage, here are five crucial insights to fuel the latest developments.
According to data from Benzinga Pro, AutoNation has a 52-week high of $182.08 and a 52-week low of $94.92.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
