AN Stock Analysis — AutoNation
Sector: Retail
AI Verdict
At 9.5x forward earnings with credible double-digit growth and a scale moat, this is cheap for the growth you're getting if AutoNation maintains its operational edge.
Competitive Moat
AutoNation is the largest automotive retailer in the U.S., with a coast-to-coast dealership network that gives it scale advantages in inventory sourcing and pricing power. Its nationwide brand and integrated digital sales platform create switching costs for customers and operational efficiencies competitors struggle to match.
Summary
AutoNation trades at less than 10x next year's earnings with double-digit EPS growth expected, making it a standout among auto retailers.
Where It Stands
With a forward P/E of 9.5x versus 11.7% expected EPS growth and a trailing P/E of 10.6x, AN trades well below the consumer retail median of 20x and is priced for low expectations despite its scale.
Key Metrics
- Trailing P/E: 10.6x
- Forward P/E: 9.5x
- PEG Ratio: 0.91
- Earnings Growth: +0.1%
- Revenue Growth: -0.0%
- 52-Week High: $235.81
- 52-Week Low: $176.62
Analyst Consensus
19 Buy · 4 Hold · 0 Sell (23 analysts)
Bull Case
Analysts expect 11.7% EPS growth next year while the stock trades at just 9.5x forward earnings, making it cheap for the growth on offer.
Bear Case
If the P/E reverts from 10.6x to 8x (closer to auto retail troughs), the stock could lose over 20% even if earnings hold steady.
Catalyst to Watch
Quarterly earnings showing sustained EPS growth above 10% would reinforce the case for a higher multiple.