Lithia Motors offers compelling headline valuation—a PEG of 0.69 and a forward earnings multiple near 7.6 times—backed by three beats in the last four quarters; however, below-floor business quality with a Piotroski F-Score of 2 out of 9, 18% short interest, and an asymmetry ratio of only 0.5-to-1 collectively place this name in the avoid category despite the surface-level cheapness.
Thesis pillars
- Below Floor Business Quality↓Deteriorating
- Cheap Valuation Earnings Support↑Improving
- High Short Interest Overhang↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Lithia Motors, Inc. (LAD) Stock Analysis
Consumer Cyclical · Auto & Truck Dealerships
Sell if holding. Engine safety override at $358.02: Quality below floor (2.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 2.0:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 14%; Below-average business quality; Negative price momentum.
Lithia and Driveway operated 455 automotive retail locations across 54 brands in the United States, United Kingdom, and Canada at December 31, 2025, selling new and used vehicles, financing and insurance products, and repair services through both physical dealerships and the... Read more
Sell if holding. Engine safety override at $358.02: Quality below floor (2.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 2.0:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 14%; Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.2/10, moderate confidence.
Passes 6/7 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, earnings proximity 37d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: moderate.
Recent developments
updated 2026-09-14Recent Developments — Lithia Motors, Inc.
Latest news
- NEWS Lithia Buys Texas Hyundai Dealership, Adding About $75M In Annual Revenue — benzinga Sep 8, 2026 positive
- NEWS Lithia & Driveway Awards $500K In Grants To Support Kids And Local Communities — benzinga Sep 1, 2026 positive
- NEWS Barclays Maintains Overweight on Lithia Motors, Raises Price Target to $415 — benzinga Aug 19, 2026 positive
- NEWS JP Morgan Maintains Neutral on Lithia Motors, Raises Price Target to $340 — benzinga Aug 4, 2026 neutral
- NEWS Evercore ISI Group Maintains Outperform on Lithia Motors, Raises Price Target to $470 — benzinga Aug 4, 2026 positive
Generated 2026-09-14T06:44:01Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMSupplierHonda, Toyota, Ford, BMW, and Stellantis25%10-K Item 1A: 'New vehicles from five manufacturers, Honda, Toyota, Ford, BMW, and Stellantis, represent 25% of our sales.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $358.02: Quality below floor (2.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 2.0:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 14%; Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $345.77. Score 5.2/10, moderate confidence.
Take-profit target: $402.58 (+12.4% upside). Prior stop was $345.77. Stop-loss: $345.77.
Quality below floor (2.9 < 4.0); Value-trap signals (2/5): High leverage (D/E 6.2), Negative free cash flow.
Lithia Motors, Inc. trades at a P/E of 11.8 (forward 8.5). TrendMatrix value score: 8.0/10. Verdict: Sell.
21 analysts cover LAD with a consensus score of 4.0/5. Average price target: $447.
What does Lithia Motors, Inc. do?Lithia and Driveway operated 455 automotive retail locations across 54 brands in the United States, United Kingdom, and...
Lithia and Driveway operated 455 automotive retail locations across 54 brands in the United States, United Kingdom, and Canada at December 31, 2025, selling new and used vehicles, financing and insurance products, and repair services through both physical dealerships and the Driveway.com e-commerce platform. The company targets acquisition multiples of 3x-6x EBITDA, averaging over 25% returns by the third year of ownership.