The Best Auto Retailers Stocks Right Now (Updated May 2026)
These seven auto retailers offer different mixes of valuation, profitability, and earnings resilience, with Asbury ranking first on overall investment quality.
Auto retailers remain an interesting corner of the consumer market because they sit between vehicle demand, financing availability, and the recurring economics of service and parts. As new-vehicle pricing continues to normalize after the supply shock of the past few years, the strongest operators are showing that earnings durability does not depend only on selling more cars. The better businesses are leaning into used-vehicle sourcing, finance and insurance penetration, and fixed operations such as maintenance, collision repair, and replacement parts, where margins can be steadier than front-end vehicle gross profit.
It also helps to think about the industry in layers. CarMax represents the largest pure used-car model in this group, while dealer groups such as Lithia, AutoNation, Group 1, Penske, Asbury, and Sonic combine new and used sales with service, F&I, and in some cases broader transportation exposure. The structural support is clear: a large installed base of vehicles on the road, recurring repair demand, and a gradual shift toward digital retailing and centralized inventory management. Recent filings also show active portfolio moves and capital allocation decisions across the sector.
In this list, the stocks are ranked by investment quality, not simply by size or recent share-price momentum. That means the countdown weighs profitability, valuation, growth trends, earnings execution, and analyst sentiment together. We start at No. 7 and work down to the top pick at No. 1, with each company offering a different way to invest in the auto retail theme.
For this screen, we focused on U.S.-listed auto retailers with market capitalizations above $500 million, then ranked the finalists by overall investment quality using our composite metrics and primary-source financial data. The review emphasized profitability, valuation, growth, and earnings consistency, while also considering analyst consensus as a secondary check on market expectations. This is a countdown format, so the list begins with the lower-ranked qualifying names and ends with the strongest overall pick at No. 1. Because the list is refreshed monthly, the emphasis is on durable business and financial traits rather than short-lived price action.
What they do. The company operates across Franchised Dealerships, EchoPark, and Powersports in the U.S. That gives Sonic exposure to new and used vehicle sales, replacement parts, maintenance and warranty repairs, collision work, and third-party finance and insurance products, with EchoPark adding a dedicated pre-owned retail platform.
Why it fits. Sonic fits the auto retail theme because it spans several of the industry's most important profit pools instead of relying on one channel alone. Its mix of franchised dealerships, used-car retail through EchoPark, and service and F&I exposure gives it multiple ways to participate as gross margins normalize and retailers push harder on higher-margin fixed operations.
Numbers that matter. Sonic generated $15.19 billion in revenue with EBITDA of $662.4 million, but profitability is still relatively thin, with a 15.9% gross margin, 3.47% operating margin, and 0.72% net margin. Revenue growth was just 1.0% year over year, while earnings growth was down 12.3% year over year, which helps explain the lower ranking. The stock trades at 24.66 times trailing earnings, though the forward P/E drops to 11.95, suggesting expectations for earnings recovery. Return metrics are respectable, with ROE at 10.51% and ROA at 5.45%.
Recent momentum. Sonic's recent earnings record has been mixed, with a beat rate of 4 out of the last 8 quarters. The latest report on April 23, 2026 delivered EPS of $1.62 versus a $1.59 estimate, a 1.9% beat, but that followed several misses, including a large miss in July 2025. Analyst sentiment is cautious rather than bullish, with 2 Buy ratings and 4 Hold ratings, and the average target of $81.91 sits only modestly above current trading levels.
What they do. The company is one of the largest U.S. automotive retailers, operating across Domestic, Import, Premium Luxury, and AutoNation Finance. In addition to new and used vehicle sales, it generates revenue from parts and service, collision centers, used-vehicle stores, auctions, parts distribution centers, and finance and insurance products.
Why it fits. AutoNation is a classic scale player in auto retail, with broad brand exposure and a meaningful mix of fixed operations and finance. That matters in the current environment because retailers with service, parts, collision, and F&I depth can better offset softer front-end vehicle economics when pricing and unit margins normalize.
Numbers that matter. AutoNation produced $27.49 billion in revenue and $1.56 billion in EBITDA, with a 18.0% gross margin, 4.65% operating margin, and 2.47% net margin. Revenue declined 2.1% year over year, but earnings growth was up 31.5% year over year, a much better earnings profile than the sales line alone suggests. The stock trades at 10.30 times trailing earnings and 8.80 times forward earnings, while ROE stands out at 29.33% and ROA at 5.85%. Those are strong quality markers, even if leverage keeps the composite debt-equity component weak.
Recent momentum. The company has beaten EPS estimates in 5 of the last 8 quarters, including strong beats through most of 2025, though the latest quarter on April 16, 2026 missed by 6.0% with EPS of $4.69 versus a $4.99 estimate. Analyst positioning remains measured, with 1 Buy and 7 Hold ratings. Even so, the average target of $243.55 implies analysts still see notable upside if operating trends hold.
What they do. Group 1 operates automotive dealerships and digital retail operations in the U.S. and the U.K. Its business includes new and used vehicle sales, service and insurance contracts, wholesale used-vehicle auctions, parts sales, vehicle financing arrangements, maintenance, and collision repair.
Why it fits. Group 1 fits this list because it combines dealership scale with digital capability and a balanced mix of vehicle, service, parts, and finance revenue. That blend is useful in a more normalized margin environment, where recurring service demand and insurance-related income can help stabilize results when new-vehicle profitability cools.
Numbers that matter. The company generated $22.47 billion in revenue and $1.08 billion in EBITDA. Margins are solid for the group, with a 16.1% gross margin, 4.55% operating margin, and 1.46% net margin, while ROE came in at 11.18% and ROA at 6.0%. Revenue slipped 1.8% year over year, but earnings still grew 12.1% year over year, and the valuation remains reasonable at 12.39 times trailing earnings and 7.82 times forward earnings. That combination supports its A- quality grade.
Recent momentum. Group 1 has a 5-for-8 earnings beat rate, but the recent pattern has softened. The last three reports all missed estimates, including EPS of $8.66 versus $8.8175 expected in April 2026 and EPS of $8.49 versus $9.87 expected in February 2026. Analysts are still constructive overall, with 2 Buy and 3 Hold ratings, and the average target of $443.27 indicates a more favorable long-term view than the recent earnings cadence might suggest.
Get AI research on any stock
Instant reports, daily intelligence, and an AI analyst in your pocket.
What they do. Penske is more diversified than most names on this list, operating retail automotive and retail commercial truck dealerships across the U.S. and several international markets. Beyond new and used vehicle sales, it earns from maintenance and repair, parts, collision services, third-party finance and insurance products, and truck distribution and power systems.
Why it fits. Penske's appeal in the auto retail theme is its diversification. The company is not just a franchised dealer group; it also has meaningful commercial truck and transportation exposure, which broadens the earnings base and adds another layer of parts and service demand beyond consumer auto sales alone.
Numbers that matter. Penske generated $31.72 billion in revenue, the highest figure in this list, along with $1.42 billion in EBITDA. Profitability is healthy, with a 16.4% gross margin, 3.68% operating margin, and a notably strong 2.88% net margin, while ROE reached 16.48% and ROA was 4.41%. Revenue declined 1.1% year over year and earnings fell 7.8% year over year, so growth is not the main attraction here. Instead, the stock's 11.90 trailing P/E reflects a business that still looks reasonably priced relative to its scale and margin profile.
Recent momentum. Earnings momentum has been mixed to weak lately, with a 4-for-8 beat rate and three straight misses. The latest quarter on April 29, 2026 posted EPS of $3.05 versus a $3.33 estimate, an 8.4% miss, following a 10.4% miss in February. Analysts are cautious, with 1 Buy, 5 Hold, and 1 Sell rating, and the average target of $185.78 suggests moderate upside rather than a strong re-rating case.
What they do. Lithia operates an automotive retail platform across the U.S., U.K., and Canada. Its business spans new and used vehicles, financing and insurance products, aftersales repair and maintenance, e-commerce, captive finance solutions, fleet management, and other related ownership-lifecycle services.
Why it fits. Lithia stands out because it is built around the full vehicle ownership lifecycle rather than a single transaction. That matters in auto retail today: the more a company can monetize finance, service, maintenance, and digital customer relationships after the sale, the more resilient earnings can be when front-end vehicle margins normalize.
Numbers that matter. Lithia generated $37.73 billion in revenue and $1.89 billion in EBITDA, making it one of the largest operators in the group. The company posted a 15.4% gross margin, 3.63% operating margin, and 1.88% net margin, with ROE of 10.87% and ROA of 3.95%. Revenue growth was 1.0% year over year, but earnings growth was down 46.1% year over year, which is the main reason it does not rank even higher. Even so, valuation is attractive at 9.65 times trailing earnings and 7.83 times forward earnings.
Recent momentum. Lithia has one of the stronger earnings track records in the group, beating estimates in 6 of the last 8 quarters. The latest report on April 29, 2026 came in at $7.34 per share versus a $6.8624 estimate, a 7.0% beat, and most of the prior year also featured solid upside surprises. Analysts are constructive, with 3 Buy and 3 Hold ratings, and the average target of $371.73 reflects a favorable view of the company's medium-term earnings power.
Pick #2Subscribers only
Subscribers see this pick's full breakdown — investment thesis, key financial metrics, recent earnings execution, and analyst consensus.
Subscribers get the complete breakdown — pick rationale, financial metrics, and recent earnings detail.
This ranking started with U.S.-listed auto retailers above $500 million in market value and then ordered the finalists by investment quality. The review incorporated our composite quality grade alongside primary-source financial data on valuation, profitability, growth, and earnings execution. We also used analyst consensus as a secondary sentiment check, while keeping the focus on business fundamentals rather than short-term stock moves. Because this article is refreshed monthly, the bold stat lines emphasize evergreen figures such as market cap, quality grade, and analyst consensus instead of day-to-day price changes. The result is a countdown designed to highlight the strongest overall setups in the group, with the best pick appearing last at No. 1.
▌The Daily Briefing · Free
A new stock idea, every evening.
One stock worth watching each weekday, plus the analysis behind it. Free, in your inbox.
