3 Growing Auto Dealer Stocks On NYSE To Explore

Summary

• Shares of CarMax has grown 42 percent this year and rallied its 52 weeks high in March.
• AutoNation’s stock gained 46 percent year to date while its revenue rose 27 percent in the first quarter.
• Share of Michigan-based automotive dealer Penske jumped 49 percent year to date.

The year 2020 was a tough year for auto dealers as the coronavirus outbreak dented their sales and earnings. Still, some dealership stocks gained last year. 

New vehicle sales reportedly fell 14.7 percent to 14.57 million units in 2020 amid the impact of the pandemic. In the first quarter, auto sales reportedly rose by 8 percent.

Here, we explore three NYSE-listed stocks of auto dealers, which have staged a robust growth year to date.

CarMax, Inc. (NYSE:KMX)

CarMax shares declined 7.37 percent in 2020 and it hit its 52 week low of US$69.41 last year. However, the stock jumped 42 percent year to date. It rallied to its 52 week high of US$136.54 on March 30.

Source: EODHD/Others, CarMax share price YTD.

The Virginia-based used car dealer recently reported is fiscal fourth-quarter results, in which the company saw its net earnings decline 2.3 percent year over year to US$209.9 million.

Total used unit sales in comparable stores during the three months ended Feb. 28 declined 0.9 percent while total unit sales dropped 2.3 percent. The company said the sales were impacted by the delayed tax refund and severe weather.

However, the net sales during the period increased by 4.1 percent year over year to US$5.16 billion.

CarMax noted that it witnessed a robust used unit sales growth in March compared to the last two years.

AutoNation, Inc. (NYSE:AN)

Shares of the Florida-based automotive dealer grew 41 percent on NYSE last year. The stock price gained 46 percent year to date and rallied to its 52-week high of US$104.16 on April 26.

Source: EODHD/Others, AutoNation share price YTD.

In the first quarter of 2021, AutoNation’s adjusted EPS soared 207 percent to US$2.79 per share.

The Florida-based automotive dealer’s revenues came in at US%5.90 billion, up 27 percent year over year. Same-store new vehicle unit sales and used vehicle unit sales during the quarter rose 22 percent and 28 percent respectively.

Meanwhile, AutoNation has agreed to acquire 11 stores and one collision center from Peacock Automotive Group.

The company projects one million combined new and used vehicle sales annually.

Penske Automotive Group, Inc. (NYSE:PAG)

Share of Penske grew 17.4 percent in 2020, while it fell to its 52-week low of US$29.65 in May last year. However, the stock is trading at US$88.75, up 49 percent year to date. The stock jumped to its 52-week high of US$90.57 on Monday.

Source: EODHD/Others, Penske share price YTD.

The Michigan-based automotive and truck dealer Penske Automotive reported a 253.1 percent growth in its first quarter EPS to US$2.26 from 64 cents in the year-ago period. Net income totaled US$183.1 million, up from US$51.5 million.

The company’s revenue for the three months ended March 31 grew 15.3 percent year over year to US$5.77 billion. New and used retail automotive same-store unit sales rose 5.5 percent.

In 2020, Michigan-based Penske’s net revenue declined 12 percent to US$2.44 billion.