Autonation Stock Buy Hold or Sell Recommendation

AN Stock  USD 160.21  3.54  2.26%   
Allowing for the 90-day total investment horizon and your above-average risk tolerance, our recommendation regarding AutoNation is 'Strong Hold'. The recommendation algorithm takes into account all of AutoNation's available fundamental, technical, and predictive indicators you will find on this site.
  
Check out AutoNation Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
To learn how to invest in AutoNation Stock, please use our How to Invest in AutoNation guide.
In addition, we conduct extensive research on individual companies such as AutoNation and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards AutoNation. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Execute AutoNation Buy or Sell Advice

The AutoNation recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on AutoNation. Macroaxis does not own or have any residual interests in AutoNation or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute AutoNation's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell AutoNationBuy AutoNation
Strong Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

Not AvailableDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon AutoNation has a Risk Adjusted Performance of (0.05), Jensen Alpha of 0.027, Total Risk Alpha of 0.0958 and Treynor Ratio of (0.09)
Macroaxis provides advice on AutoNation to complement and cross-verify current analyst consensus on AutoNation. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure AutoNation is not overpriced, please confirm all AutoNation fundamentals, including its price to book, cash and equivalents, cash flow from operations, as well as the relationship between the gross profit and debt to equity . Given that AutoNation has a price to earning of 4.96 X, we suggest you to validate AutoNation market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

AutoNation Trading Alerts and Improvement Suggestions

AutoNation generated a negative expected return over the last 90 days
AutoNation has a strong financial position based on the latest SEC filings
Over 88.0% of the company shares are held by institutions such as insurance companies

AutoNation Returns Distribution Density

The distribution of AutoNation's historical returns is an attempt to chart the uncertainty of AutoNation's future price movements. The chart of the probability distribution of AutoNation daily returns describes the distribution of returns around its average expected value. We use AutoNation price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of AutoNation returns is essential to provide solid investment advice for AutoNation.
Mean Return
-0.11
Value At Risk
-3.6
Potential Upside
2.14
Standard Deviation
1.71
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of AutoNation historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

AutoNation Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to AutoNation or Specialty Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that AutoNation's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a AutoNation stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.03
β
Beta against Dow Jones1.33
σ
Overall volatility
1.71
Ir
Information ratio -0.0055

AutoNation Volatility Alert

AutoNation exhibits very low volatility with skewness of -0.72 and kurtosis of 0.57. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure AutoNation's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact AutoNation's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

AutoNation Fundamentals Vs Peers

Comparing AutoNation's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze AutoNation's direct or indirect competition across all of the common fundamentals between AutoNation and the related equities. This way, we can detect undervalued stocks with similar characteristics as AutoNation or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of AutoNation's fundamental indicators could also be used in its relative valuation, which is a method of valuing AutoNation by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare AutoNation to competition
FundamentalsAutoNationPeer Average
Return On Equity0.3-0.31
Return On Asset0.0663-0.14
Profit Margin0.03 %(1.27) %
Operating Margin0.06 %(5.51) %
Current Valuation15.09 B16.62 B
Shares Outstanding39.06 M571.82 M
Shares Owned By Insiders8.20 %10.09 %
Shares Owned By Institutions87.89 %39.21 %
Number Of Shares Shorted1.63 M4.71 M
Price To Earning4.96 X28.72 X
Price To Book2.64 X9.51 X
Price To Sales0.23 X11.42 X
Revenue26.77 B9.43 B
Gross Profit4.79 B27.38 B
EBITDA1.6 B3.9 B
Net Income692.2 M570.98 M
Cash And Equivalents72.6 M2.7 B
Cash Per Share8.93 X5.01 X
Total Debt8.65 B5.32 B
Debt To Equity2.42 %48.70 %
Current Ratio1.05 X2.16 X
Book Value Per Share62.95 X1.93 K
Cash Flow From Operations314.7 M971.22 M
Short Ratio3.40 X4.00 X
Earnings Per Share16.92 X3.12 X
Price To Earnings To Growth2.73 X4.89 X
Target Price209.36
Number Of Employees25.1 K18.84 K
Beta1.32-0.15
Market Capitalization6.15 B19.03 B
Total Asset13 B29.47 B
Retained Earnings5.33 B9.33 B
Working Capital(1.61 B)1.48 B
Note: Disposition of 6269 shares by Gianluca Camplone of AutoNation at 183.49 subject to Rule 16b-3 [view details]

AutoNation Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as AutoNation . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About AutoNation Buy or Sell Advice

When is the right time to buy or sell AutoNation? Buying financial instruments such as AutoNation Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having AutoNation in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Commodities Funds Thematic Idea Now

Commodities Funds
Commodities Funds Theme
Funds or Etfs investing in commodities such as oil, gold, corn, soy, and agricultural goods. The Commodities Funds theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Commodities Funds Theme or any other thematic opportunities.
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Check out AutoNation Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
To learn how to invest in AutoNation Stock, please use our How to Invest in AutoNation guide.
You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Is Automotive Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AutoNation. If investors know AutoNation will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AutoNation listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of AutoNation is measured differently than its book value, which is the value of AutoNation that is recorded on the company's balance sheet. Investors also form their own opinion of AutoNation's value that differs from its market value or its book value, called intrinsic value, which is AutoNation's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AutoNation's market value can be influenced by many factors that don't directly affect AutoNation's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AutoNation's value and its price as these two are different measures arrived at by different means. Investors typically determine if AutoNation is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AutoNation's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.