Dear followers & copiers,
💎We've just opened a LONG $AN (AutoNation) position using 3.10% of our equity. 💎
Why we bought the stock?🙋♂️
✅AutoNation delivered better than expected financial performance result for the fifth consecutive time in its Q2 2021 Earnings report.
🥇The company has managed to diversify its portfolio of products very well throughout the last few years, which in turn has drastically lowered its overall risk profile. A well-balanced portfolio of products is also a great long-term stability indicator for the company's position in the industry that it operates in.
🚀What we find extremely attractive from a Growth standpoint is that $AN Auto Nation has been deploying substantial efforts in solidifying its strong footprint as an industry leader by introducing a new digital platform called AutoNation Express, further developing its already large dealer network and
last but not least investing heavily in its store expansion program.
💯The outstanding ability of the senior management team at $AN Auto Nation and the company's CEO Mike Jackson are inevitably going to drive profitability even higher in the coming quarters.
⏳The company is in the process of completing a buyout of 11 stores and a collision center from Peacock Automotive Group, which will drastically improve AutoNation’s portfolio and add $380 million in its annual revenues.
📈AutoNation has also demonstrated that one of the company's core focus points continues to be on the efforts of improving the company's already stable financial position. The operating margins have been very positively affected by the disciplined application of insightful cost reduction and management strategies. AutoNation is committed to operate below or at 65% SG&A as a percentage of gross profit in 2021, signaling a major improvement from its 71%-73% range over the last several years. Its adjusted SG&A as a percentage of gross profit was 56.5% in the last reported quarter, representing an 1,170-basis point improvement year over year.
🤩The company's financial position is also impressive with the combination of a strong balance sheet, low leverage and high liquidity. The firm’s debt-to-capital ratio stands at 0.36, which is another sign that the company possesses plenty of financial flexibility.
📈Technical Picture📈
The stock has experienced a rather meaningful 25% retracement from the $125 per share highs and is currently sitting in an oversold territory at a multi-year support area, which is favoring LONG positions. All of the indicators that we monitor are also turning up higher, signaling the building up of bullish momentum in the stock. The first major resistance that the stock will face and in our opinion will definitely break through is around the $125 area. Once the previous highs are broken then the stock will be easily heading higher towards the next round level of $150 per share.
👌Our plan is to hold the stock for the long term with a potential Target price level of $150 per share.
Follow & Copy us for FREE and get more detailed market analyses, profitable trading ideas and consistent portfolio performance🤝
Sincerely,
Dow Experts
💎We've just opened a LONG $AN (AutoNation) position using 3.10% of our equity. 💎
Why we bought the stock?🙋♂️
✅AutoNation delivered better than expected financial performance result for the fifth consecutive time in its Q2 2021 Earnings report.
🥇The company has managed to diversify its portfolio of products very well throughout the last few years, which in turn has drastically lowered its overall risk profile. A well-balanced portfolio of products is also a great long-term stability indicator for the company's position in the industry that it operates in.
🚀What we find extremely attractive from a Growth standpoint is that $AN Auto Nation has been deploying substantial efforts in solidifying its strong footprint as an industry leader by introducing a new digital platform called AutoNation Express, further developing its already large dealer network and
last but not least investing heavily in its store expansion program.
💯The outstanding ability of the senior management team at $AN Auto Nation and the company's CEO Mike Jackson are inevitably going to drive profitability even higher in the coming quarters.
⏳The company is in the process of completing a buyout of 11 stores and a collision center from Peacock Automotive Group, which will drastically improve AutoNation’s portfolio and add $380 million in its annual revenues.
📈AutoNation has also demonstrated that one of the company's core focus points continues to be on the efforts of improving the company's already stable financial position. The operating margins have been very positively affected by the disciplined application of insightful cost reduction and management strategies. AutoNation is committed to operate below or at 65% SG&A as a percentage of gross profit in 2021, signaling a major improvement from its 71%-73% range over the last several years. Its adjusted SG&A as a percentage of gross profit was 56.5% in the last reported quarter, representing an 1,170-basis point improvement year over year.
🤩The company's financial position is also impressive with the combination of a strong balance sheet, low leverage and high liquidity. The firm’s debt-to-capital ratio stands at 0.36, which is another sign that the company possesses plenty of financial flexibility.
📈Technical Picture📈
The stock has experienced a rather meaningful 25% retracement from the $125 per share highs and is currently sitting in an oversold territory at a multi-year support area, which is favoring LONG positions. All of the indicators that we monitor are also turning up higher, signaling the building up of bullish momentum in the stock. The first major resistance that the stock will face and in our opinion will definitely break through is around the $125 area. Once the previous highs are broken then the stock will be easily heading higher towards the next round level of $150 per share.
👌Our plan is to hold the stock for the long term with a potential Target price level of $150 per share.
Follow & Copy us for FREE and get more detailed market analyses, profitable trading ideas and consistent portfolio performance🤝
Sincerely,
Dow Experts