AutoNation trades at a forward earnings multiple of 8x with a PEG below 1 and has delivered four consecutive quarters of earnings beats, but business quality falls short of the minimum acceptable threshold and heavy put options activity signals elevated near-term risk.
Thesis pillars
- Consistent Earnings Beat Streak↓Deteriorating
- Weak Quality Floor Breach→Stable
- Brand Concentration Supplier Risk↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
AutoNation, Inc. (AN) Stock Analysis
Consumer Cyclical · Auto & Truck Dealerships
Sell if holding. Engine safety override at $166.98: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.4/10 and A.R:R 3.0:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 12%; Elevated put/call ratio: 3.39; Below-average business quality.
AutoNation operates 245 automotive retail stores across the United States with 323 new vehicle franchises selling 30 brands, concentrated in major Sunbelt markets. Revenue streams span new and used vehicle sales, parts and service, and finance and insurance products via a... Read more
Sell if holding. Engine safety override at $166.98: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.4/10 and A.R:R 3.0:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 12%; Elevated put/call ratio: 3.39; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.4/10, moderate confidence.
Passes 5/7 gates (favorable risk/reward ratio, clean insider activity, earnings proximity 33d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: moderate.
Recent developments
updated 2026-09-26Recent Developments — AutoNation, Inc.
Latest news
- NEWS Citigroup Maintains Buy on AutoNation, Lowers Price Target to $255 — benzinga Sep 21, 2026 neutral
- NEWS AutoNation Stock Slides as Softer Q3 Outlook Raises Margin Concerns — benzinga Sep 18, 2026 negative
- NEWS Nasdaq 100 Rallies as Oil Slides, Yields Retreat: Stock Market Today — benzinga Sep 17, 2026 positive
- NEWS Argus Research Maintains Buy on AutoNation, Raises Price Target to $246 — benzinga Aug 11, 2026 positive
- NEWS Stephens & Co. Maintains Equal-Weight on AutoNation, Raises Price Target to $232 — benzinga Aug 10, 2026 positive
Generated 2026-09-26T10:02:21Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHSuppliercore brands89%10-K Item 1A: 'The core brands of vehicles that we sell, representing approximately 89% of the new vehicles that we sold in 2025...we are subject to a concentration of risk'
- MEDIUMGeographicFlorida26%10-K Item 1: 'Florida| | 51 | | | 57 | | | 18 | | | 26 |'
- LOWGeographicTexas20%10-K Item 1: 'Texas| | 48 | | | 61 | | | 17 | | | 20 |'
- LOWGeographicCalifornia19%10-K Item 1: 'California| | 41 | | | 54 | | | 2 | | | 19 |'
Material Events(8-K, last 90d)
- 2026-04-29Item 5.02LOWStockholders approved AutoNation's 2026 Employee Equity and Incentive Plan on April 28, 2026; allows grants of RSUs, options, and other awards; up to 1,275,000 new shares plus 883,316 carryover from the 2017 Plan.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $166.98: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.4/10 and A.R:R 3.0:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 12%; Elevated put/call ratio: 3.39; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $157.09. Score 5.4/10, moderate confidence.
Take-profit target: $213.73 (+28.0% upside). Prior stop was $157.09. Stop-loss: $157.09.
Concentration risk — Supplier: core brands (89.0%); Quality below floor (3.5 < 4.0).
AutoNation, Inc. trades at a P/E of 7.7 (forward 6.5). TrendMatrix value score: 9.1/10. Verdict: Sell.
23 analysts cover AN with a consensus score of 4.1/5. Average price target: $246.
What does AutoNation, Inc. do?AutoNation operates 245 automotive retail stores across the United States with 323 new vehicle franchises selling 30...
AutoNation operates 245 automotive retail stores across the United States with 323 new vehicle franchises selling 30 brands, concentrated in major Sunbelt markets. Revenue streams span new and used vehicle sales, parts and service, and finance and insurance products via a captive auto finance company; Florida (26%), Texas (20%), and California (19%) account for roughly 65% of total revenue.