10 Undervalued Cyclical Stocks to Invest In

​6. Lithia Motors, Inc. (NYSE:LAD)

Forward P/E Ratio: 9.35

Number of Hedge Fund Holders: 45

​Lithia Motors, Inc. (NYSE:LAD) is one of the Undervalued Cyclical Stocks to Invest In. On January 9, Benchmark reiterated a Buy rating on Lithia Motors, Inc. (NYSE:LAD) with a $400 price target. Earlier on December 11, Evercore ISI also reiterated a Buy rating on the stock with a $500 price target.

​Benchmark noted that the rating reflects the firm’s updated forecasts for the company’s performance metrics. The new outlook includes the reduction in production volumes and the gross profit per unit. The firm expects a deleveraging to 67% of sales for Lithia Motors, Inc. (NYSE:LAD). Moreover, Benchmark also now expects the company to generate $409 million EBITDA during the fourth quarter, along with an adjusted EPS of $8.21.

​On the other hand, Evercore ISI expects the company to deliver an in-line performance during the fiscal fourth quarter. The firm added that the market environment is characterized by challenging new sales and pressure on new vehicle gross profits per unit in Q4.

​Lithia Motors, Inc. (NYSE:LAD) is set to release its fiscal Q4 2025 results on February 12, 2026. Wall Street expects the company to post roughly $9.30 billion in revenue, along with a GAAP EPS of $8.41.

​Lithia Motors, Inc. (NYSE:LAD) is the largest auto dealer in the United States. It is a new and used vehicle retailer that also provides related services.