13 Best Automotive Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 47

Lithia Motors, Inc. (NYSE:LAD) is one of the best automotive stocks to buy according to hedge funds. On August 22, Benchmark Co. analyst Michael Albanese reiterated a Buy rating on Lithia Motors, Inc. (NYSE:LAD) and set a price target of $400.00.

However, on August 11, Guggenheim lowered the firm’s price target on Lithia & Driveway to $380 from $383, while keeping a Buy rating on the shares.

The firm told investors in a sector note that while a number of auto dealers reported Q2 earnings that surpassed consensus expectations, the reactions remained generally negative despite the strong results.

It added that while concerns exist about how the group would trade into an SAAR slowdown, positive inflection in sales in July and the recent pullback in the group may help “de-risk the near-term setup.”

Lithia Motors, Inc. (NYSE:LAD) operates as a global automotive retailer that offers a wide range of products and services throughout the vehicle ownership lifecycle. The company retails new and used vehicles and also offers other services, including captive finance solutions, comprehensive fleet management services, and other synergistic adjacencies. Its operations are divided into the Vehicle Operations and Financing Operations segments.

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