It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

Lithia Motors, Inc. is one of the leading automotive retailers of new and used vehicles, and related services in the United States. As of Dec 31, 2024, the company offered 52 vehicle brands across 459 locations in the United States, United Kingdom and Canada.

LAD is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 8.7X for the current fiscal year compared to the Automotive - Retail and Whole Sales industry's P/E 10.8X. Additionally, LAD has a PEG Ratio of 0.5 and a Price/Cash Flow ratio of 6.8X. Value investors should also note LAD's Price/Sales ratio of 0.2X.

A company's earnings performance is important for value investors as well. For fiscal 2025, three analysts revised their earnings estimate higher in the last 60 days for LAD, while the Zacks Consensus Estimate has increased $1.22 to $35.24 per share. LAD also holds an average earnings surprise of 5.7%.

Investors should take the time to consider LAD for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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Lithia Motors, Inc. (LAD) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research