12 Best Consumer Cyclical Stocks to Buy According to Analysts

7. Lithia Motors, Inc. (NYSE:LAD)

Number of Hedge Fund Holders: 45

Average Upside Potential as of November 28: 23.61%

Lithia Motors, Inc. (NYSE:LAD) is an American vehicle retailer that sells new and old vehicles. It is one of the largest retailers of its kind, with 298 outlets in the US and 151 in the UK

As of November 28th, 8 out of 15 analyst recommendations for Lithia Motors, Inc. (NYSE:LAD) were a Buy. Out of the remaining seven, four were a Strong Buy while three were a Hold. The average share price target for Lithia Motors, Inc. (NYSE:LAD) was $394.13.

Evercore ISI maintained Lithia Motors, Inc. (NYSE:LAD) stock at Outperform and raised the share price target to $500 from $440 on November 24th. The price target came as a part of Evercore’s reevaluation of the broader automotive sector through which it sees a 20% upside in 2026.

Lithia Motors, Inc. (NYSE:LAD) ended October 2025 with a major announcement as it added three Hyundai dealerships to its portfolio. Through the deal, the firm expects to generate $440 million in annualized revenue. Like other car retailers, the firm is also operating in a different environment with regard to electric vehicles. Additionally, during the firm’s third-quarter earnings call, management discussed its beliefs regarding 2026 auto demand and the impact of tariffs on the car industry.

When asked by Stephens’ Jeffry Lick about the tariff impact, Lithia Motors, Inc. (NYSE:LAD) CEO Bryan DeBoer commented:

“The good news is I believe that the Koreans and the Japanese are responding to the market nicely. They are not raising prices. I think our increases in two of the main import Japanese brands talking about 250 to $300 increases. On their main product lines like CRVs RAV fours, and so on. And these cars are now full hybrids or they’re plug-in hybrids that are just better and more economical cars. So on an affordability level for a consumer, I don’t think tariffs I think tariffs can be overcome by better gas mileage and lower bills at the pump or electrification.”

For his complete remarks, you can check out the Q3 earnings call transcript.