Zacks Investment Research
28 Oct 2026, 15:51 UTC · 6h ago
Lithia & Driveway Stock After Q3 Earnings: Buy, Hold or Sell?
Impact · against what's priced in
LAD faces significant headwinds from margin contraction in new vehicles and F&I, combined with poor cost control and high leverage. The data indicates a systemic decline in core profitability and an elevated risk profile that suggests further downward pressure on the stock.
- LAD−0.70
No priced-in read yet
- In context
The company is seeing a sustained decline in new-vehicle gross profit (-11.8% YTD) and F&I performance, while SG&A expenses (68.8% of gross profit) are significantly above management's 60-65% target.
Read from the article alone
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