LAD · NYSE · STOCK
Lithia Motors (LAD) Stock Analysis
$290.16
52W $239.78 – $439.49
53/100
$6.38B
9.6
1.26
Is LAD Bullish or Bearish?
Mixed.
Innellis AI committee rates Lithia Motors (LAD) Watch with a composite score of 53/100
, based on 6 analysts with 50% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +7.22 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -12.78 from today. The band boundary is 45.0, 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. Value Analyst sees a compelling case — p/e of 8.8 is inexpensive for the broad market. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- P/E of 8.8 is inexpensive for the broad market — Value
- Price-to-book of 1.2x is a discount to asset value — Value
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
Bear Case
- Debt-to-equity of 2.24 adds balance-sheet risk to the value case — Value
- EPS declining -10.6% YoY despite any revenue growth — Growth
- MACD histogram negative -- bearish momentum — Technical
- High leverage (debt-to-equity 2.24) amplifies downside in a stress scenario — Risk
- Bollinger bandwidth of 25.6% 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 October 10, 2026
Overall Committee Score
53/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 73%
of 178 Consumer Cyclical peers
Value Analyst
bullish
65
/ 100 · Moderate confidence
Classic value case: cheap on multiples with earnings power to back it up
+ P/E of 8.8 is inexpensive for the broad market
− Debt-to-equity of 2.24 adds balance-sheet risk to the value case
Growth Analyst
neutral
48
/ 100 · High confidence
Moderate growth -- present but not remarkable
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
− EPS declining -10.6% YoY despite any revenue growth
Technical Analyst
neutral
48
/ 100 · High confidence
Mixed or range-bound price action
− MACD histogram negative -- bearish momentum
Risk Analyst
bearish
32
/ 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 2.24) amplifies downside in a stress scenario
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
neutral
58
/ 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 51.1 to 52.8.
- Committee agreement increased notably from 33% to 50%.
- New bearish signals: 1 appeared.
- Bearish pressure eased: 2 signal(s) disappeared.
- Analyst(s) changed stance: Technical Analyst.
Analyst-level changes:
- Risk Analyst: +1 bearish signal(s).
- Technical Analyst: stance bearish->neutral; score 38->48 (+10).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
32.1
Neutral
MACD Histogram
-0.653
Bearish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Mixed
Support
$285.28
Resistance
$298.90
Bollinger %B
0.25
Inside Bands
Price vs Moving Averages
EMA 9
$296.66
Below
EMA 21
$312.03
Below
EMA 50
$328.49
Below
EMA 200
$319.68
Below
Fundamental Analysis
Valuation
100
Growth
84
Profitability
26
Financial Health
8
Cash Flow
15
Valuation
P/E Ratio
9.6×
P/B Ratio
1.02×
PEG Ratio
-0.91
Dividend Yield
0.82%
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
2.58
AI Fundamental Assessment
P/E ratio of 9.6 (inexpensive relative to a 15-40x range); Price-to-book of 1.0x; PEG ratio of -0.9 (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 2.58; 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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