LAD · NASDAQ · STOCK
Lithia Motors
$373.80
52W $239.78 – $439.49
63/100
$8.26B
12.4
1.24
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is LAD Bullish or Bearish?
Bullish.
Innellis AI committee rates Lithia Motors (LAD) Buy with a composite score of 63/100
, based on 5 analysts with 80% agreement.
Last updated August 09, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +11.51 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -8.49 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Growth Analyst sees a compelling case — quarter-over-quarter growth rate is accelerating, not just positive. Risk Analyst remains cautious — bollinger bandwidth of 33.4% signals elevated volatility. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Price structure making higher highs and higher lows — Technical
- Trend and market structure agree -- coherent bullish picture — Technical
- Weekly trend (uptrend) confirms the daily trend -- multi-timeframe agreement — Technical
- Market regime is bullish (Bull market -- normal position sizing) — Macro
- News sentiment is positive (+0.27 across 35 articles, 14d) — News
Bear Case
- MACD histogram negative -- bearish momentum — Technical
- Bollinger bandwidth of 33.4% signals elevated volatility — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of August 09, 2026
Overall Committee Score
63/100
Agreement
80%
Analysts
5
Conviction
Contested
Sector Rank
Top 22%
of 124 Consumer Cyclical peers
Growth Analyst
bullish
85
/ 100 · Low confidence
Strong, accelerating growth with consistent execution
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
Technical Analyst
bullish
61
/ 100 · High confidence
Price action is constructive -- trend and momentum agree
+ Price structure making higher highs and higher lows
− MACD histogram negative -- bearish momentum
Risk Analyst
bearish
35
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Bollinger bandwidth of 33.4% signals elevated volatility
Macro Analyst
bullish
70
/ 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
66
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.27 across 35 articles, 14d)
Portfolio Manager
neutral
55
/ 100 · Moderate confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− 4 existing position pair(s) are highly correlated already
Investment Thesis Evolution
Committee score strengthened from 57.2 to 63.5.
- Conviction changed from moderate to contested.
- Committee agreement increased notably from 67% to 80%.
- Bullish support removed: 3 signal(s) disappeared.
- New bullish signals: 1 appeared.
- Bearish pressure eased: 3 signal(s) disappeared.
- Analyst(s) changed stance: Growth Analyst.
- Analyst(s) abstained: Value Analyst.
Analyst-level changes:
- Growth Analyst: stance neutral->bullish; score 48->85 (+37).
- News Analyst: +1 bullish signal(s).
- Value Analyst abstained (was bullish at 65).
Comparing 2026-08-08 to 2026-08-09 (1 day apart).
Technical Analysis
RSI (14)
56.7
Neutral
MACD Histogram
-0.118
Bearish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Hh Hl
Support
$337.75
Resistance
$387.47
Bollinger %B
0.67
Inside Bands
Price vs Moving Averages
EMA 9
$372.43
Above
EMA 21
$356.13
Above
EMA 50
$330.34
Above
EMA 200
$308.56
Above
Fundamental Analysis
Valuation
100
Growth
84
Profitability
26
Financial Health
35
Cash Flow
15
Valuation
P/E Ratio
12.4×
P/B Ratio
1.31×
PEG Ratio
-1.18
Dividend Yield
0.63%
52W High
$439.49
52W Low
$239.78
Quality & Growth
ROE
1241.2%
ROA
326.4%
Gross Margin
1103.3%
Operating Margin
222.6%
Revenue Growth YoY
—
Debt / Equity
1.43
AI Fundamental Assessment
P/E ratio of 12.4 (inexpensive relative to a 15-40x range); Price-to-book of 1.3x; PEG ratio of -1.2 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 12.4%; Return on assets of 3.3%; Net margin of 1.9%; Gross margin of 11.0%; Current ratio of 1.00 (tight short-term liquidity); Debt-to-equity of 1.43; Free cash flow per share is negative (-22.41); Most recent quarter beat estimates by 30.1%; 2 consecutive earnings beats; EPS growth accelerating (+8.9% -> +57.2% QoQ); Average YoY EPS growth of 12.7%; Analyst estimates rising over recent quarters
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