Lithia Motors offers compelling headline valuation—a PEG of 0.69 and a forward earnings multiple near 7.6 times—backed by three beats in the last four quarters; however, below-floor business quality with a Piotroski F-Score of 2 out of 9, 18% short interest, and an asymmetry ratio of only 0.5-to-1 collectively place this name in the avoid category despite the surface-level cheapness.
Thesis pillars
- Below Floor Business Quality↓Deteriorating
- Cheap Valuation Earnings Support↓Deteriorating
- High Short Interest Overhang↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 25, 2026· older than 90 days
Lithia Motors, Inc. (LAD) Stock Analysis
Consumer Cyclical · Auto & Truck Dealerships
Sell if holding. Engine safety override at $315.64: Quality below floor (2.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10. Specifically: High short interest: 13%; Elevated put/call ratio: 1.44; Below-average business quality.
Lithia and Driveway operated 455 automotive retail locations across 54 brands in the United States, United Kingdom, and Canada at December 31, 2025, selling new and used vehicles, financing and insurance products, and repair services through both physical dealerships and the... Read more
Sell if holding. Engine safety override at $315.64: Quality below floor (2.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10. Specifically: High short interest: 13%; Elevated put/call ratio: 1.44; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.6/10, moderate confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 97d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated Oct 27, 2026Recent Developments — Lithia Motors, Inc.
Latest news
- NEWS Chris Holzshu Joins Franchise Equity Partners as Operating Partner — fiscal.ai Oct 27, 2026 neutral
- NEWS Citigroup Maintains Buy on Lithia Motors, Lowers Price Target to $386 — benzinga Oct 23, 2026 negative
- NEWS Barclays Maintains Overweight on Lithia Motors, Lowers Price Target to $345 — benzinga Oct 23, 2026 negative
- NEWS UBS Maintains Neutral on Lithia Motors, Lowers Price Target to $305 — benzinga Oct 22, 2026 neutral
- NEWS UBS Adjusts Lithia Motors Price Target to $305 From $335 — fiscal.ai Oct 22, 2026 negative
Latest item Oct 27, 2026 · Generated 2026-11-05T11:49:10Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMSupplierHonda, Toyota, Ford, BMW, and Stellantis25%10-K Item 1A: 'New vehicles from five manufacturers, Honda, Toyota, Ford, BMW, and Stellantis, represent 25% of our sales.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Technicals 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 $315.64: Quality below floor (2.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10. Specifically: High short interest: 13%; Elevated put/call ratio: 1.44; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $293.55. Score 5.6/10, moderate confidence.
Analyst target: $352.08 (+11.5% upside). Prior stop was $293.55. Stop-loss: $293.55.
Quality below floor (2.7 < 4.0); Value-trap signals (2/5): High leverage (D/E 5.1), Negative free cash flow.
Lithia Motors, Inc. trades at a P/E of 9.1 (forward 7.8). TrendMatrix value score: 8.2/10. Verdict: Sell.
20 analysts rate LAD, with a consensus score of 4.1/5. 15 analysts publish price targets averaging $391.
What does Lithia Motors, Inc. do?Lithia and Driveway operated 455 automotive retail locations across 54 brands in the United States, United Kingdom, and...
Lithia and Driveway operated 455 automotive retail locations across 54 brands in the United States, United Kingdom, and Canada at December 31, 2025, selling new and used vehicles, financing and insurance products, and repair services through both physical dealerships and the Driveway.com e-commerce platform. The company targets acquisition multiples of 3x-6x EBITDA, averaging over 25% returns by the third year of ownership.