In this article, we discuss the 5 best used car stocks to buy. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Used Car Stocks to Buy.
5. AutoNation, Inc. (NYSE: AN)
Number of Hedge Fund Holders: 24
AutoNation, Inc. (NYSE: AN) is a Florida-based automotive retailer that sells new and used cars. It is ranked fifth on our list of 10 best used car stocks to buy. The company’s shares have returned 110% to investors over the past twelve months. In earnings results for the second quarter, posted on July 19, the firm reported earnings per share of $4.83, beating estimates by $2.02. The revenue over the period was close to $7 billion, up 54% year-on-year and beating expectations by a whopping $910 million.
On July 20, investment advisory Truist kept a Hold rating on AutoNation, Inc. (NYSE: AN) stock but raised the price target to $110 from $100, citing the recent second quarter results and favorable business dynamics for the coming months as the reasons behind the update.
At the end of the first quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $585 million in AutoNation, Inc. (NYSE: AN), up from 23 in the previous quarter worth $586 million.
“AutoNation has been a long-term holding for us dating back to the first year of the Fund. Management continues to make prudent decisions both investing in growth and shrinking the share count at cheap prices.
Most would not expect a global pandemic to benefit AutoNation, but the industry experienced a record year. Dealers have been able to increase profit margins due to a variable cost operating model and lower inventories. AutoNation has been able to materially reduce their operating expenses over the last year which will continue to benefit the business going forward…” (Click here to see the full text)