The car dealer has more than tripled its share price in the past 12 months
AutoNation, Inc. (NYSE: AN) is the largest car dealer in America. The company provides new and used vehicles and related services in the United States. AutoNation owns and operates over 315 locations and has sold over 13 million vehicles. This afternoon, AN is trading 0.7% at $ 96.95.
On April 13, AutoNation announced that it will release its financial results for the first quarter of 2021 ahead of the opening on Tuesday, April 20. AutoNation has managed to consistently exceed profit expectations in all four of the most recent quarterly reports. For the first quarter of 2020, AutoNation beat analysts’ estimates by $ 0.25 and reported earnings per share of $ 0.91. For the second quarter of 2020, AutoNation increased its earnings per share to $ 1.41, beating expectations with a margin of $ 1.04. For the third quarter of 2020, AutoNation posted another surge in earnings, rising to $ 2.38 per share, beating estimates by $ 0.73. In the latest report, AutoNation posted earnings per share of $ 2.43, exceeding expectations by $ 0.42. Analysts expect AutoNation to post a $ 1.85 drop in earnings per share on Tuesday.
AN more than tripled in the past year, up 236% from bottoming to a multi-year low of $ 28.79 last April. Additionally, AutoNation stock is up more than 39% year-to-date, fresh from today’s record high of $ 97.98.
AutoNation stock has an impressive price / earnings ratio of 12.87, which is significantly better than its current price / earnings ratio of 22.62. Based on its current valuation, AN could see its bullish shape widening in the short term, but it may struggle to maintain its value over the long term.
The option pits, on the other hand, were bearish. The security’s 50-day put / call volume ratio of 1.74 on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) is over 95% of last year’s readings.