NASDAQ · STOCK
Lithia Motors
$385.47
52W $239.78 – $439.49
56/100
$8.47B
12.7
1.26
Is LAD Bullish or Bearish?
Mixed.
Innellis AI committee rates Lithia Motors (LAD) Watch with a composite score of 56/100
, based on 7 analysts with 57% agreement.
Last updated August 01, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +3.77 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -16.23 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Macro Analyst sees a compelling case — market regime is bullish (bull market -- normal position sizing). Risk Analyst remains cautious — high leverage (debt-to-equity 2.24) amplifies downside in a stress scenario. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- P/E of 11.9 is inexpensive for the broad market — Value
- Price-to-book of 1.2x is a discount to asset value — Value
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Price structure making higher highs and higher lows — Technical
- MACD histogram positive -- bullish momentum — Technical
- Trend and market structure agree -- coherent bullish picture — Technical
Bear Case
- Debt-to-equity of 2.24 adds balance-sheet risk to the value case — Value
- EPS declining -10.6% YoY despite any revenue growth — Growth
- Weekly RSI at 82 -- overbought on the larger timeframe too — Technical
- High leverage (debt-to-equity 2.24) amplifies downside in a stress scenario — Risk
- Bollinger bandwidth of 38.3% signals elevated volatility — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of August 01, 2026
Overall Committee Score
56/100
Agreement
57%
Analysts
7
Conviction
Contested
Sector Rank
Top 42%
of 124 Consumer Cyclical peers
Value Analyst
bullish
65
/ 100 · Moderate confidence
Classic value case: cheap on multiples with earnings power to back it up
+ P/E of 11.9 is inexpensive for the broad market
− Debt-to-equity of 2.24 adds balance-sheet risk to the value case
Growth Analyst
neutral
48
/ 100 · High confidence
Moderate growth -- present but not remarkable
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
− EPS declining -10.6% YoY despite any revenue growth
Technical Analyst
bullish
69
/ 100 · High confidence
Price action is constructive -- trend and momentum agree
+ Price structure making higher highs and higher lows
− Weekly RSI at 82 -- overbought on the larger timeframe too
Risk Analyst
bearish
32
/ 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 2.24) amplifies downside in a stress scenario
Macro Analyst
bullish
70
/ 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
64
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.20 across 29 articles, 14d)
Portfolio Manager
neutral
45
/ 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2535.03)
Investment Thesis Evolution
Committee score strengthened from 53.1 to 56.2.
- Committee agreement increased notably from 43% to 57%.
- New bearish signals: 4 appeared.
- New bullish signals: 1 appeared.
- Bearish pressure eased: 6 signal(s) disappeared.
- Analyst(s) changed stance: Macro Analyst.
Analyst-level changes:
- Macro Analyst: stance neutral->bullish; score 58->70 (+12).
- News Analyst: +1 bullish signal(s).
- Portfolio Manager: +2 bearish signal(s).
- Risk Analyst: +1 bearish signal(s).
- Technical Analyst: score 61->69 (+8); +1 bearish signal(s).
Comparing 2026-07-31 to 2026-08-01 (1 day apart).
Technical Analysis
RSI (14)
63.0
Neutral
MACD Histogram
6.928
Bullish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Hh Hl
Support
$337.75
Resistance
$387.47
Bollinger %B
0.86
Inside Bands
Price vs Moving Averages
EMA 9
$370.01
Above
EMA 21
$345.51
Above
EMA 50
$320.78
Above
EMA 200
$305.23
Above
Fundamental Analysis
Valuation
100
Growth
84
Profitability
0
Financial Health
35
Cash Flow
14
Valuation
P/E Ratio
12.7×
P/B Ratio
1.35×
PEG Ratio
-1.21
Dividend Yield
0.01%
52W High
$439.49
52W Low
$239.78
Quality & Growth
ROE
12.4%
ROA
3.3%
Gross Margin
11.0%
Operating Margin
2.2%
Revenue Growth YoY
—
Debt / Equity
1.43
AI Fundamental Assessment
P/E ratio of 12.7 (inexpensive relative to a 15-40x range); Price-to-book of 1.3x; PEG ratio of -1.2 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 0.1%; Return on assets of 0.0%; Net margin of 0.0%; Gross margin of 0.1%; Current ratio of 1.00 (tight short-term liquidity); Debt-to-equity of 1.43; Free cash flow margin of 2.6% (thin cash generation); Free cash flow per share is negative (-25.88); Most recent quarter beat estimates by 30.1%; 2 consecutive earnings beats; EPS growth accelerating (+8.9% -> +57.2% QoQ); Average YoY EPS growth of 12.7%; Analyst estimates rising over recent quarters
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