SYS-CON MEDIA Authors: Jim Kaskade, Pat Romanski, Michael Bushong, Eric Brown, Gilad Parann-Nissany

News Feed Item

The Zacks Analyst Blog Highlights:Ford Motor, Toyota Motor, Asbury Automotive Group, AutoNation and Lithia Motors

CHICAGO, Feb. 19, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Ford Motor Co. (NYSE:F-Free Report), Toyota Motor Corp. (NYSE:TM-Free Report), Asbury Automotive Group, Inc. (NYSE:ABG-Free Report), AutoNation Inc. (NYSE:AN-Free Report) and Lithia Motors Inc. (NYSE:LAD-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Tuesday's Analyst Blog:

Auto Sales Slide: 3 Stocks to Bet On

A series of economic reports released recently seem to suggest that the economy is facing some trouble. Among these were lower factory orders and weak home sales data, as well as an increase in jobless claims. But disappointing retail data was what was particularly worrying for investors.

Retail Sales Fall

Retail sales declined 0.4% in January and December numbers were also revised downwards. An increase of 0.2% in December has now been changed to a 0.1% decline. This second monthly decline was primarily attributed to freezing temperatures in several regions of the U.S.

Core retail sales, which excludes building materials and food services, gasoline and automobiles, declined by 0.3%, after rising by the same amount in December. But some segments, such as building materials and garden equipment, experienced gains of 1.4%.

In fact, excluding automobiles, retails sales were mostly unchanged. Sales at auto dealers fell 2.1%, leading the pack of decliners. Carmakers also blamed weak sales numbers on unusually frigid temperatures.

Strong 2013 Numbers

Auto sales exceeded analysts' initial expectations for 2013, despite slipping somewhat in December. 15.6 million cars and trucks were sold in the U.S., the highest figure clocked since the 16.1 million recorded in 2007.

Detroit automakers contributed 7.4 million of the total numbers, with the Detroit Three performing particularly well. Ford Motor Co. (NYSE:F-Free Report) topped the chart with a 10.8% increase over 2012. Analysts expect sales to slow down this year as pent-up demand declines.

However, profitability is expected to increase and Edmunds.com has even predicted an increase of 6% in 2014. Toyota Motor Corp. (NYSE:TM-Free Report) believes U.S. auto sales will continue to recover, albeit slowly. As many emerging markets struggle, carmakers will increasingly focus on mature economies such as the U.S.

Below we present three auto retailers which stand to gain from the continuing recovery in car sales, each of which also has a good Zacks rank.

Asbury Automotive Group, Inc.

One of the leading auto retailers in the U.S., Asbury Automotive Group, Inc. (NYSE:ABG-Free Report) provides a range of automotive services and sells several auto products. Asbury had 99 franchises as of December 31, 2011. At the time, the company sold 30 foreign domestic and brands of vehicles.

Asbury Automotive Group holds a Zacks Rank #2 (Buy) and has expected earnings growth of 15.10%. The forward price-to-earnings ratios (P/E) for the current financial year (F1) is 12.34.

AutoNation Inc.

AutoNation Inc. (NYSE:AN-Free Report) is an auto retailer which has three business segments: Import, Premium Luxury and Domestic. The company's stores offers 32 different brands of vehicles. Of its 258 franchises as of December 31, 2011, 215 were located in the U.S. Most of these domestic locations were in the Sunbelt region.

Currently the company holds a Zacks Rank #2 (Buy) and has expected earnings growth of 11.90%. It has a P/E (F1) of 15.16.

Lithia Motors Inc.                                                      

Our third choice is Lithia Motors Inc. (NYSE:LAD-Free Report). The company sells cars and light trucks, both used and new, as well as auto parts. Additionally, it is involved in vehicle maintenance, repair, auto related financing and credit insurance. The company sold 25 new brands across 86 domestic stores as of February 24, 2012.

Besides a Zacks Rank #2 (Buy), Lithia Motors has expected earnings growth of 9.00%. It has a P/E (F1) of 13.08.

Even though recent data has been below par, the overall outlook for the economy remains upbeat. Fed Chair Janet Yellen has promised to keep interest rates at low levels, despite the proposed cuts in stimulus. This gives credence to the argument that the auto sector will continue to recover, making these stocks good additions to your portfolio.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on F - FREE

Get the full Report on TM - FREE

Get the full Report on ABG - FREE

Get the full Report on AN - FREE

Get the full Report on LAD - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.