Forecasting The Future: 4 Analyst Projections For AutoNation

Ratings for AutoNation AN were provided by 4 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $184.75, a high estimate of $200.00, and a low estimate of $170.00. This upward trend is evident, with the current average reflecting a 1.37% increase from the previous average price target of $182.25.

Investigating Analyst Ratings: An Elaborate Study

In examining recent analyst actions, we gain insights into how financial experts perceive AutoNation. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to AutoNation. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.

Capture valuable insights into AutoNation's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on AutoNation analyst ratings.

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.

AutoNation: A Financial Overview

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Negative Revenue Trend: Examining AutoNation's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -4.45% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: AutoNation's net margin is impressive, surpassing industry averages. With a net margin of 2.82%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): AutoNation's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 8.16%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): AutoNation's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.44% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: AutoNation's debt-to-equity ratio is below the industry average. With a ratio of 3.69, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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