Now is the time for value stocks, so it’s time to discover the appeal of AutoNation (AN) stocks. Read on below for the full story.
Many investors misunderstand a bear market. That’s because they see the average stock down 20% or more… even worse, high-profile growth stocks like Tesla or Roku are down 60-80%. This makes them think that there is no way to generate profits in the negative environment.
The real lesson is to look for value. That is the path that leads to outperformance, even in the face of a bear market. And that’s why I want you to turn your attention to AutoNation (A).
AutoNation is the largest car dealership in the United States and has benefited greatly from the increase in used car sales and their rising value. The company also launched its AutoNation USA used vehicle store concept, which is expected to generate huge profits in the years to come. This gives investors a nice combination of steady organic growth and an exciting new growth engine.
Even as interest rates have risen, American consumers continue to show their clear love and devotion to cars as buying demand remains strong. This comes out loud and clear with the Auto Dealers Group still in the top 1/3ed of our Industry Rank with a healthy B rating.
In terms of value, it’s quite shocking to see the current P/E just below 5. Even in the middle of the 2022 sell-off, that’s an eye-wateringly cheap level for any stock, let alone a market leader like AutoNation.
The value story continues with an overall A rating. This means that of the 31 different factors in the POWR Ratings model, AN is in the top 5% by value. This likely explains why the analyst at Bank of America still has a $238 share price target, which is more than 100% above current levels. That alone could make AN the poster child for this report of heavily undervalued stocks.
Want to discover more value stocks?
AutoNation is just 1 of 7 attractive value stocks found in a new special report we just put together. Click the link below to claim your free copy now:
What to do now?
Check out my brand new presentation: “Stock market outlook for 2023” covering:
- Why 2023 a “Jekyll & Hyde” year for shares
- 5 warnings indicate the bear will return in early 2023
- 8 trades to make a profit on the way down
- Plan to Bottom Fish @ Market Bottom
- 2 Trades with 100%+ upside potential as new bull emerges
- And much more!
Wishing you a world of investment success!
Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
CEO, Stock News Network and Editor, Reitmeister Total Return
AN shares closed Friday at $111.00, up $1.89 (+1.73%). Year-to-date, AN has gained 3.45%, versus a 1.48% increase in the benchmark S&P 500 index over the same period.
About the author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the company, but he also shares his 40 years of investing experience in the Reitmeister Total Return Portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.