Published on 19 Sep 2024 on Insider Monkey · via Yahoo Finance

Is AutoNation, Inc. (AN) The Best Automotive Stock To Buy Now?

We recently published a list of 10 Best Automotive Stocks To Buy Now. In this article, we are going to take a look at where AutoNation, Inc. (NYSE:AN) stands against the other automotive stocks.

Headwinds in the Automotive Industry

The automotive industry is heavily commoditized relative to other industries considering the fact that consumers typically have numerous options in terms of the car they want to purchase, resulting in the need for automotive companies to compete with each other predominantly on pricing. As a result, many automotive companies, especially those offering pricier vehicles, have been seeing a decline in revenue growth and profit margins over the past couple of years. This decline is primarily a consequence of rising inflation which has significantly cut down your average consumer’s spending power.