Sonic Automotive, Inc. (NYSE:SAH – Get Free Report) has received an average rating of “Hold” from the eleven analysts that are currently covering the company, Marketbeat.com reports. One investment analyst has rated the stock with a sell rating, five have given a hold rating and five have issued a buy rating on the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $90.6667.
Several equities analysts have recently weighed in on the company. Seaport Research Partners downgraded Sonic Automotive from a “buy” rating to a “neutral” rating and raised their target price for the company from $185.00 to $205.00 in a research report on Friday, July 17th. JPMorgan Chase & Co. dropped their price target on Sonic Automotive from $77.00 to $76.00 and set an “underweight” rating for the company in a research report on Monday, July 13th. Weiss Ratings raised Sonic Automotive from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday. Stephens set a $89.00 price objective on Sonic Automotive in a report on Monday, July 13th. Finally, Barclays lifted their target price on shares of Sonic Automotive from $77.00 to $92.00 and gave the stock an “equal weight” rating in a research note on Wednesday, July 15th.
View Our Latest Analysis on SAH
Insider Buying and Selling at Sonic Automotive In related news, President Jeff Dyke sold 50,000 shares of the business’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $82.97, for a total transaction of $4,148,500.00. Following the transaction, the president directly owned 111,622 shares in the company, valued at approximately $9,261,277.34. The trade was a 30.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 100,000 shares of company stock valued at $8,408,160 over the last quarter. Company insiders own 43.68% of the company’s stock.
Institutional Trading of Sonic Automotive A number of hedge funds have recently bought and sold shares of the business. Tudor Investment Corp ET AL grew its position in shares of Sonic Automotive by 41.2% in the third quarter. Tudor Investment Corp ET AL now owns 183,522 shares of the company’s stock valued at $13,964,000 after purchasing an additional 53,510 shares in the last quarter. BNP Paribas Financial Markets lifted its position in Sonic Automotive by 70.8% during the fourth quarter. BNP Paribas Financial Markets now owns 181,189 shares of the company’s stock worth $11,208,000 after buying an additional 75,125 shares in the last quarter. Heartland Advisors Inc. acquired a new position in Sonic Automotive during the first quarter worth $8,450,000. Louisiana State Employees Retirement System purchased a new stake in Sonic Automotive in the 1st quarter valued at $453,000. Finally, ProShare Advisors LLC grew its holdings in Sonic Automotive by 22.3% in the 4th quarter. ProShare Advisors LLC now owns 94,898 shares of the company’s stock valued at $5,870,000 after buying an additional 17,286 shares in the last quarter. Institutional investors and hedge funds own 46.92% of the company’s stock.
Sonic Automotive Stock Up 0.8% SAH opened at $99.89 on Thursday. The company has a market cap of $3.16 billion, a PE ratio of 31.81, a price-to-earnings-growth ratio of 1.53 and a beta of 0.89. Sonic Automotive has a twelve month low of $54.11 and a twelve month high of $104.30. The company has a 50-day moving average price of $85.80 and a 200 day moving average price of $72.60. The company has a quick ratio of 0.29, a current ratio of 1.03 and a debt-to-equity ratio of 1.93.
Sonic Automotive (NYSE:SAH – Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $1.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.40 by $0.22. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.The company had revenue of $3.69 billion for the quarter, compared to analysts’ expectations of $3.73 billion. During the same period in the previous year, the firm posted $1.48 EPS. Sonic Automotive’s revenue was up 1.0% compared to the same quarter last year. Sell-side analysts expect that Sonic Automotive will post 6.93 earnings per share for the current fiscal year.
Sonic Automotive Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th were given a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 1.6%. This is a positive change from Sonic Automotive’s previous quarterly dividend of $0.38. The ex-dividend date was Monday, June 15th. Sonic Automotive’s dividend payout ratio (DPR) is currently 52.23%.
About Sonic Automotive (Get Free Report)
Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive’s dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.
In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.
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Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
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Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.
SAH is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. SAH has a Growth Style Score of B, forecasting year-over-year earnings growth of 5% for the current fiscal year.
For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $6.93 per share. SAH boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SAH should be on investors' short list.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.
SAH is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 14.55; value investors should take notice.
For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $6.93 per share. SAH boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SAH should be on investors' short list.
Wall Street expects a year-over-year decline in earnings on higher revenues when Sonic Automotive (SAH - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis auto dealer is expected to post quarterly earnings of $1.75 per share in its upcoming report, which represents a year-over-year change of -20.1%.
Revenues are expected to be $3.78 billion, up 3.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.35% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Sonic Automotive?For Sonic Automotive, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that Sonic Automotive will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Sonic Automotive would post earnings of $1.46 per share when it actually produced earnings of $1.62, delivering a surprise of +10.96%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Sonic Automotive doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Automotive - Retail and Whole Sales industry, Lithia Motors (LAD - Free Report) , is soon expected to post earnings of $8.67 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -15.3%. Revenues for the quarter are expected to be $9.64 billion, up 0.6% from the year-ago quarter.
The consensus EPS estimate for Lithia Motors has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.31%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Lithia Motors will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
In the second quarter, the Heartland Value Fund gained 17.05%, compared with the 17.19% return for the Russell 2000 Value Index. Earlier this year, we reduced our stake in Photronics, a leading manufacturer of photomasks that are used to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication process. i3 Verticals' shares slumped from around $34 last fall to below $20 in May over concerns that emerging automation and machine learning technologies are disrupting software stocks.
The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Sonic Automotive (SAH - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.
Sonic Automotive is one of 187 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Sonic Automotive is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for SAH's full-year earnings has moved 6% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, SAH has gained about 49.3% so far this year. Meanwhile, the Retail-Wholesale sector has returned an average of 1% on a year-to-date basis. As we can see, Sonic Automotive is performing better than its sector in the calendar year.
One other Retail-Wholesale stock that has outperformed the sector so far this year is Tilly's (TLYS - Free Report) . The stock is up 111.1% year-to-date.
In Tilly's' case, the consensus EPS estimate for the current year increased 67.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Sonic Automotive is a member of the Automotive - Retail and Whole Sales industry, which includes 9 individual companies and currently sits at #107 in the Zacks Industry Rank. On average, stocks in this group have gained 6.5% this year, meaning that SAH is performing better in terms of year-to-date returns.
Tilly's, however, belongs to the Retail - Apparel and Shoes industry. Currently, this 38-stock industry is ranked #73. The industry has moved -7.6% so far this year.
Investors with an interest in Retail-Wholesale stocks should continue to track Sonic Automotive and Tilly's. These stocks will be looking to continue their solid performance.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Sonic Automotive (SAH - Free Report) . SAH is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
We also note that SAH holds a PEG ratio of 0.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SAH's industry currently sports an average PEG of 0.92. Within the past year, SAH's PEG has been as high as 0.74 and as low as 0.44, with a median of 0.53.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SAH has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.22.
Finally, we should also recognize that SAH has a P/CF ratio of 8.93. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. SAH's current P/CF looks attractive when compared to its industry's average P/CF of 11.02. Within the past 12 months, SAH's P/CF has been as high as 10.08 and as low as 5.06, with a median of 6.80.
These are only a few of the key metrics included in Sonic Automotive's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SAH looks like an impressive value stock at the moment.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.
SAH is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Retail-Wholesale stock. SAH has a Momentum Style Score of B, and shares are up 11.7% over the past four weeks.
For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $6.94 per share. SAH boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SAH should be on investors' short list.
On July 09, 2026, Sonic Automotive Inc (SAH) shares rose 8.3% to $95.31. The stock has demonstrated significant price performance, with a year-to-date increase
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A limited-edition commemorative 86th Annual Sturgis Motorcycle Rally t-shirt from the Sturgis Harley-Davidson online drop.
The expanded lineup represents the single largest Harley-Davidson inventory ever brought to one location in the country. It gives rallygoers an unrivaled opportunity to access highly sought-after trikes alongside a massive selection of new and pre-owned motorcycles in every color, configuration, and style, during one of the world's most iconic motorcycle events.
Through the newly launched "Rally Ready" pre-sale program, riders can shop before rally week, secure their preferred motorcycle, and schedule pickup upon arrival in Sturgis. This program is designed for rallygoers traveling from across the country who want to spend less time searching for the right bike and more time riding the Black Hills. Because this is the most in-demand inventory in the country, these premium motorcycles will go fast. Riders are encouraged to visit SturgisHD.com to secure their dream ride before the rally begins.
"The Sturgis Motorcycle Rally is a cornerstone event for the riding community. It is an iconic celebration of freedom, the open road, and the American spirit," said David B. Smith, Chairman and Chief Executive Officer of Sonic Automotive. "This year, we are proud to bring riders an unmatched Sturgis experience through expanded motorcycle inventory, exclusive limited-edition products, and a rally-week experience designed around what riders value most."
Limited-Edition America 250 Motorcycles and Collector Merchandise
To celebrate America's 250th anniversary, Sturgis Harley-Davidson and Sonic Powersports will introduce the exclusive "250 Years of Freedom" collection, a limited series of 26 custom Harley-Davidson motorcycles available through Sonic Powersports.
The motorcycles feature custom silver livery, commemorative 1776–2026 badging, patriotic details, premium finishes and distinctive rally-inspired design elements. The collection will go on pre-sale beginning today at SturgisHD.com. With only 26 motorcycles available, once the collection sells out, it will not be restocked.
In a powerful showcase of the Sonic Automotive family network, one of these highly coveted, custom motorcycles will be awarded to the winner of the Quaker State 400 at EchoPark Speedway on July 12, uniting Sonic's premier pre-owned automotive brand, EchoPark Automotive, with its elite powersports division.
Sturgis Harley-Davidson will also launch exclusive online merchandise drops for collectors and rallygoers, including eight 86th Rally apparel designs and a vintage reprint series inspired by Sturgis Harley-Davidson graphics from the 1990s and 2000s. The limited-edition apparel drops are available now online only at SturgisHD.com.
"Preparing for the Sturgis Rally is a year-round effort that starts with understanding what riders want most from their rally experience," said Jeff Dyke, President of Sonic Automotive. "This year, we have expanded our inventory, introduced new ways for riders to secure motorcycles before arriving, and developed exclusive products that can only be found through our dealerships. We are ready to welcome riders from across the country and deliver an experience that matches the scale and energy of Sturgis."
Event: 86th Annual Sturgis Motorcycle Rally Dates: Aug. 7–16, 2026 Location: Sturgis and the Black Hills, South Dakota Inventory: More than 1,200 Harley-Davidson motorcycles, the largest inventory in the country, available through Sturgis Harley-Davidson Program: "Rally Ready" pre-sale with scheduled pickup during rally week Trikes: Largest selection of Harley-Davidson trikes in the country Limited Edition: 26 "250 Years of Freedom" custom Harley-Davidson motorcycles celebrating America's 250th anniversary Apparel: Online-only collector merchandise drops featuring 86th Rally designs and vintage Sturgis Harley-Davidson reprints Website: SturgisHD.com Parent Company: Sonic Automotive, Inc. (NYSE: SAH) For more information on the Rally Ready pre-sale program, available motorcycles, limited-edition America 250 motorcycles, collector apparel drops, and the full Sturgis Harley-Davidson rally experience, visit SturgisHD.com.
For real-time rally updates, behind-the-scenes content, merchandise previews, and event highlights, follow @sonicpowersports, @sturgisharleydavidson, and @blackhillshd on Instagram and Facebook.
About Sonic Automotive
For more than 60 years, Sonic Automotive has pursued a single purpose: to deliver an experience for our guests and our teammates that fulfills dreams, enriches lives, and delivers happiness. We don't simply sell and service vehicles. We help people pursue their dreams, whether it's a guest purchasing their first vehicle, a family creating lifelong memories, or a teammate building a meaningful career.
Founded in 1966 by Bruton Smith, the company has grown into a Fortune 300 company under the leadership of Chairman and CEO David B. Smith. Today, more than 11,000 teammates bring the company's purpose to life across a nationwide network of 173 automotive and powersports franchises in 145 locations in 90 cities and 21 states. We are proud to represent 24 automotive and 15 powersports brands and have helped more than 7 million guests purchase vehicles, delivered over 40 million service experiences, and earned more than 1 million 5-star reviews by consistently putting people first.
At Sonic Automotive, we believe trust isn't claimed – it's earned through transparency, consistency, integrity, and genuine care. That's why we were the only automotive and powersports retailer recognized by Newsweek as one of America's Most Trustworthy Companies in 2026. As the automotive and powersports industries continue to evolve, our mission remains constant: to innovate, lead with integrity, and create exceptional experiences that inspire confidence, build lifelong relationships, and positively impact every life we touch.
Sonic Automotive. Driven By People. Inspired By Purpose. For more information, visit www.sonicautomotive.com and ir.sonicautomotive.com.
Media Contact: Stephanie Peplinski, VML, [email protected]
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.
SAH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. SAH has a Growth Style Score of B, forecasting year-over-year earnings growth of 4.9% for the current fiscal year.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.12 to $6.92 per share. SAH also boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SAH should be on investors' short list.
CHARLOTTE, N.C.--(BUSINESS WIRE)--Sonic Automotive, Inc. (“Sonic Automotive” or “Sonic” or the “Company”) (NYSE:SAH), one of the nation’s largest automotive retailers, today announced it will release fiscal 2026 second quarter financial results on Thursday, July 30, 2026 by 7:00 A.M. (Eastern). Senior management will hold a conference call later that morning at 11:00 A.M. (Eastern).
Investor presentation and earnings press release materials will be accessible beginning the morning of the conference call on the Company’s website at ir.sonicautomotive.com.
To access the live webcast of the conference call, please go to ir.sonicautomotive.com and select the webcast link at the top of the page.
To dial in to the conference call via telephone, please dial (877) 407-8289 (domestic) or +1 (201) 689-8341 (international) and ask to be connected to the Sonic Automotive Second Quarter 2026 Earnings Conference Call.
Dial-in access remains available throughout the live call, however, to ensure you are connected for the full call we suggest dialing in at least 10 minutes before the start of the call. A webcast replay will be available following the call for 14 days at ir.sonicautomotive.com.
About Sonic Automotive
For more than 60 years, Sonic Automotive has been a leading automotive dealership franchise guided by a single purpose: to deliver an experience for our guests and our teammates that fulfils dreams, enriches lives, and delivers happiness. As one of the largest automotive and powersports retailers in the United States, we operate a nationwide network of franchised dealerships, EchoPark Automotive locations, and Sonic Powersports stores – serving millions of guests each year with consistency, care, and excellence. Founded in 1966 by Bruton Smith and grown into a Fortune 300 company under the leadership of Chairman and CEO David Smith, Sonic Automotive today represents:
11,000+ teammates 170+ automotive and powersports franchises 145 locations across 90 cities in 21 states Over 7 million vehicles sold Over 40 million service experiences delivered Over 1 million 5-star reviews earned At Sonic Automotive, we believe trust isn’t claimed – it’s earned. That’s why we were recognized by Newsweek as one of 2026 America’s Most Trustworthy Companies. It reflects what we strive to deliver every day: transparency, consistency, and care. Sonic Automotive: Driven By People. Inspired By Purpose.
More information about Sonic Automotive can be found at www.sonicautomotive.com and ir.sonicautomotive.com.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.
SAH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 12.11; value investors should take notice.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.28 to $6.92 per share. SAH boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SAH should be on investors' short list.
Heath Byrd, Executive Vice President and Chief Financial Officer of Sonic Automotive, Inc. (SAH +1.84%), reported the sale of 5,061 shares of Common Stock for ~$430,000 on June 2, 2026, according to a SEC Form 4 filing.
Transaction summaryMetricValueShares sold (direct)5,061Transaction value$430,185Post-transaction shares (direct)133,952Post-transaction shares (indirect)12,129Post-transaction value (direct ownership)$11.4 millionTransaction and post-transaction values based on SEC Form 4 reported price ($85.00).
Key questionsHow does the size of this sale compare to Byrd’s recent transaction history?
Byrd’s June 2 sale of 5,061 shares is smaller than his May 28, 2026 sale (9,526 shares) and July 18, 2024 sale (19,827 shares), reflecting reduced available holdings and aligning with the observed capacity-driven moderation in trade sizes over the past year.What portion of Byrd’s ownership was affected, and what remains?
This sale accounted for 3.35% of his direct holdings, leaving a direct stake of 133,952 shares and an indirect interest of 12,129 shares held via Bucknell Avenue, LLC — together representing ongoing exposure to the company’s equity value.What was the market context for this transaction?
The sale was executed at $85.00 per share, just above the June 2, 2026 market close of $84.80, with Sonic Automotive, Inc. shares up 14.96% over the prior twelve months as of the transaction date.Does Byrd’s activity suggest a shift in insider sentiment or strategy?
Filings indicate the sale was made under a pre-set Rule 10b5-1 plan and, with only 3.35% of direct holdings traded, is consistent with routine liquidity management rather than a change in long-term ownership strategy.Company overviewMetricValueRevenue (TTM)$15.19 billionNet income (TTM)$108.90 millionDividend yield2.32%1-year price change22.60%*1-year performance calculated using June 2nd, 2026 as the reference date.
Company snapshotSonic Automotive offers new and used vehicle sales, parts, maintenance, collision repair, warranties, service contracts, and financing through franchised dealerships and EchoPark used car stores.It generates revenue primarily from vehicle sales, after-sales services, and finance and insurance product arrangements, leveraging a multi-channel retail model.The company serves retail automotive consumers in the United States, targeting both new and pre-owned vehicle buyers across multiple states and brands.Sonic Automotive, Inc. is a leading automotive retailer with a nationwide presence, operating franchised dealerships and EchoPark specialty used car stores. The company’s integrated business model combines new and used vehicle sales with a broad range of after-sales services and finance products, supporting diverse revenue streams.
Its scale, multi-brand portfolio, and focus on customer experience position Sonic Automotive to compete effectively in the U.S. auto dealership sector.
What this transaction means for investorsThe June 2 sale of Sonic stock by CFO Heath Byrd came at a time when shares had rebounded from the 52-week low of $54.11 reached in February. In fact, the disposition at $85 per share was not far from the 52-week high of $89.62.
However, the sale was not a cause for investor concern. Byrd’s transaction was non-discretionary in nature, since it was executed as part of a pre-arranged Rule 10b5-1 trading plan. Such plans are often implemented by insiders to avoid accusations of trading based on insider information.
In addition, Byrd retained over 146,000 shares after his sale. This demonstrates he maintains a sizable equity stake in the company.
Sonic Automotive’s stock price rose because it had a solid first-quarter earnings report and it raised its dividend 8%. Q1 revenue hit a record $3.7 billion, representing 1% year-over-year growth. Moreover, the company’s EchoPark division achieved all-time record quarterly gross profit of $67.9 million in Q1, up 6% year over year.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
I change my rating for Sonic Automotive from 'Hold' to 'Buy', after assessing its near- and long-term prospects. SAH has a good chance of beating Q2 consensus revenue estimates, given that the industry and its key OEM partner have done well in the recent month. A stabilization of used vehicle pricing and a proposal to widen the EchoPark footprint bode well for SAH's under-penetrated used car business.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.
SAH is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.67; value investors should take notice.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.38 to $6.92 per share. SAH boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SAH should be on investors' short list.
President Sells 50,000 Shares for $4.3 MillionSonic Automotive (SAH 0.07%), a major U.S. auto retailer, reported a notable insider sale amid ongoing shifts in executive shareholdings.
On June 9 and June 10, Jeff Dyke, President of Sonic Automotive, reported the direct sale of 50,000 shares of Common Stock in multiple open-market transactions, as disclosed in this SEC Form 4 filing.
Transaction summaryMetricValueShares sold (direct)50,000Transaction value$4.3 millionPost-transaction shares (direct)543,668Post-transaction shares (indirect)111,622Post-transaction value (direct ownership)~$45.7 millionTransaction value based on SEC Form 4 weighted average purchase price ($85.19); post-transaction value based on June 10 market close.
Key questionsWhat proportion of Dyke’s direct holdings was impacted in this transaction?
The sale accounted for 7.1% of Dyke’s direct holdings at the time, leaving him with a substantial continuing ownership stake in both direct and indirect accounts.Were any shares sold from indirect holdings or through derivative transactions?
No shares were sold from indirect holdings or via derivative securities; all shares disposed in this transaction were directly held common stock.Company overviewMetricValueRevenue (TTM)$15.2 billionNet income (TTM)$108.9 millionDividend yield2.0%Price (as of market close June 10)$84.15Company snapshotSonic Automotive is a U.S. automotive retailer, operating through a network of franchised dealerships and EchoPark used vehicle stores across multiple states. The company offers new and pre-owned vehicles, while also offering comprehensive after-sales and finance solutions.
Offers new and pre-owned vehicle sales, replacement parts, maintenance, warranty repairs, collision repair, and finance and insurance products through franchised dealerships and EchoPark specialty stores.Serves retail automotive consumers across the United States, targeting both new car buyers and value-focused used car customers.Generates revenue primarily from vehicle sales, parts and service operations, and the sale of finance and insurance products, leveraging a dual-segment model to address both new and used car markets.What this transaction means for investorsInvestors should read neither positive nor negative signals from President Dyke’s recent share sale activity. While key insider selling could signal a bearish signal, that’s not the case here.
Dyke set up a 10b5-1 trading plan. This sets the terms of his sales activity ahead of time in an effort to avoid accusations that key officers and directors traded ahead of material insider information. His recent sales activity was conducted under this arrangement.
Additionally, Sonic Automotive’s president still holds substantial shares in the company. He directly holds 543,668 shares and indirectly, through an LLC, owns another 111,622 shares. The combined 655,290 shares have a value of about $55 million.
Looking at returns, Sonic Automotive’s stock performance has lagged the overall market lately. The shares returned 13.9% over the last year through June 15, trailing the S&P 500 index’s 28%. Both factor dividends into the total return.
Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Sonic Automotive (SAH - Free Report) . SAH is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Investors should also note that SAH holds a PEG ratio of 0.63. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SAH's industry has an average PEG of 0.96 right now. Within the past year, SAH's PEG has been as high as 0.74 and as low as 0.44, with a median of 0.53.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SAH has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.21.
Finally, investors should note that SAH has a P/CF ratio of 8.93. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.63. SAH's P/CF has been as high as 10.08 and as low as 5.06, with a median of 6.80, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sonic Automotive is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SAH feels like a great value stock at the moment.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.
SAH is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. SAH has a Growth Style Score of B, forecasting year-over-year earnings growth of 4.9% for the current fiscal year.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.38 to $6.92 per share. SAH boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SAH should be on investors' short list.
Wall Street expects a year-over-year decline in earnings on higher revenues when Sonic Automotive (SAH - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 30. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis auto dealer is expected to post quarterly earnings of $1.46 per share in its upcoming report, which represents a year-over-year change of -1.4%.
Revenues are expected to be $3.74 billion, up 2.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.45% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Sonic Automotive?For Sonic Automotive, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that Sonic Automotive will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Sonic Automotive would post earnings of $1.53 per share when it actually produced earnings of $1.52, delivering a surprise of -0.65%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Sonic Automotive doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Automotive - Retail and Whole Sales industry, Penske Automotive (PAG - Free Report) , is soon expected to post earnings of $2.91 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of -14.2%. This quarter's revenue is expected to be $7.95 billion, up 4.6% from the year-ago quarter.
The consensus EPS estimate for Penske has been revised 1.4% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.11%.
When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Penske will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Sonic Reported First Quarter Record Consolidated Revenues and Gross Profit
Sonic's EchoPark Segment Achieved All-Time Record Quarterly Pre-Tax Income and Adjusted EBITDA*
During the First Quarter, Sonic Repurchased Approximately 2.1 Million Shares of its Class A Common Stock, Representing a 6% Reduction In Outstanding Shares from December 31, 2025
CHARLOTTE, N.C.--(BUSINESS WIRE)--Sonic Automotive, Inc. (“Sonic Automotive,” “Sonic,” the “Company,” “we” “us” or “our”) (NYSE:SAH), one of the nation’s largest automotive retailers, today reported financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Financial Summary
First quarter record total revenues of $3.7 billion, up 1% year-over-year; first quarter record total gross profit of $598.8 million, up 6% year-over-year Reported net income in the first quarter was $60.8 million, down 14% year-over-year ($1.79 earnings per share, down 12% year-over-year) Reported net income for the first quarter of 2026 includes a $5.1 million pre-tax disposition-related net gain and a $3.6 million pre-tax gain related to the exit of leased dealerships, partially offset by a $0.4 million pre-tax impairment charge related to capital improvement projects (collectively, these items are partially offset by a $2.4 million income tax expense on the above net benefit) Reported net income for the first quarter of 2025 includes the effect of a $30.0 million pre-tax gain from cyber insurance proceeds, offset partially by a $1.4 million non-cash pre-tax impairment charge, a $1.0 million pre-tax disposition related net loss, and a $0.9 million pre-tax charge related to storm damage (collectively, these items are partially offset by a $7.4 million tax expense on the above net benefit) Excluding the above items, adjusted net income* for the first quarter of 2026 was $54.9 million, up 7% year-over-year ($1.62 adjusted earnings per diluted share*, up 9% year-over-year) Total reported selling, general and administrative (“SG&A”) expenses as a percentage of gross profit of 71.3% (71.9% on a Franchised Dealerships Segment basis, 62.9% on an EchoPark Segment basis, and 97.7% on a Powersports Segment basis) Total adjusted SG&A expenses as a percentage of gross profit* of 72.8% (72.9% on a Franchised Dealerships Segment basis, 68.2% on an EchoPark Segment basis, and 97.7% on a Powersports Segment basis) EchoPark Segment revenues of $580.5 million, up 4% year-over-year; all-time record quarterly EchoPark Segment total gross profit of $67.9 million, up 6% year-over-year; EchoPark Segment retail used vehicle unit sales volume of 19,326, up 3% year-over-year All-time record quarterly reported EchoPark Segment income of $16.2 million, as compared to $10.3 million in the prior year period, a 57% increase year-over-year All-time record quarterly adjusted EchoPark Segment income* of $12.6 million, as compared to $10.1 million in the prior year period, a 25% increase year-over-year All-time record quarterly EchoPark Segment adjusted EBITDA* of $18.6 million, as compared to $15.8 million adjusted EBITDA* in the prior year period, up 18% year-over-year Previously announced acquisition of Space Coast Harley-Davidson, Treasure Coast Harley-Davidson, Falcons Fury Harley-Davidson, Raging Bull Harley-Davidson, and San Diego Harley-Davidson in April 2026 is expected to add approximately $100 million in annualized revenue to Sonic's Powersports Segment During the first quarter, Sonic disposed of four Franchised Dealerships, which generated $113.5 million in revenues in 2025 and $58.7 million in gross proceeds from disposition During the first quarter, Sonic repurchased approximately 2.1 million shares of its Class A common stock for an aggregate purchase price of approximately $135.7 million, representing a 6% reduction in outstanding shares from December 31, 2025 In April 2026, Sonic's Board of Directors approved $500 million in additional share repurchase authorization, increasing the total remaining share repurchase authorization to $528 million Sonic’s Board of Directors approved an 8% increase to the quarterly cash dividend, to $0.41 per share, payable on July 15, 2026 to all stockholders of record on June 15, 2026 * Represents a non-GAAP financial measure — please refer to the discussion and reconciliation of non-GAAP financial measures below.
Commentary
David Smith, Chairman and Chief Executive Officer of Sonic Automotive, stated, “I am grateful for our team's efforts in the first quarter, which delivered several first quarter and all-time quarterly records across our operating segments. Our Franchised Dealerships built on fourth quarter momentum to deliver record consolidated first quarter revenue, and our EchoPark team capitalized on a strong tax refund season to deliver an all-time record adjusted EBITDA* of $18.6 million while continuing to provide a world-class guest experience. We are also excited to expand our Powersports segment in the great riding states of California, Florida, Georgia, and North Carolina. The acquisition of five new Harley-Davidson dealerships establishes Sonic Powersports as one of the fastest growing powersports retailers in the country and reinforces our commitment to diversifying our revenue base and enhancing shareholder returns.”
Jeff Dyke, President of Sonic Automotive, commented, “Despite tough year-over-year comparisons, our team outperformed on several key operating metrics. In our Franchised Dealerships segment, our focus on technician hiring and retention resulted in first quarter record fixed operations gross profit, up 10% year-over-year. Continued improvements in our finance and insurance operations led to first quarter records in both total gross profit and gross profit per unit. At EchoPark, our team once again proved that executing on our playbook will drive industry leading returns. With all-time records in quarterly segment total gross profit, pre-tax income, and adjusted EBITDA*, we remain confident in the long-term potential of the EchoPark brand and our plan to resume disciplined expansion of our EchoPark footprint in late 2026, supported by a strategic brand marketing investment beginning in mid-2026.”
Heath Byrd, Chief Financial Officer of Sonic Automotive, added, “As of March 31, 2026, we had approximately $381 million in cash and floor plan deposits on hand, with total liquidity of approximately $770 million. As we move through 2026, we will continue to seek opportunities to strategically deploy capital as markets evolve."
First Quarter 2026 Segment Highlights
The financial measures discussed below are results for the first quarter of 2026 with comparisons made to the first quarter of 2025, unless otherwise noted.
Franchised Dealerships Segment operating results include: Same store revenues down 4%; same store gross profit flat Same store retail new vehicle unit sales volume down 10%; same store retail new vehicle gross profit per unit down 4%, to $3,002 Same store retail used vehicle unit sales volume up 3%; same store retail used vehicle gross profit per unit down 4%, to $1,533 Same store parts, service and collision repair (“Fixed Operations”) gross profit up 5%; same store customer pay gross profit up 5%; same store warranty gross profit up 7%; same store Fixed Operations gross profit margin up 40 basis points, to 51.1% Same store finance and insurance (“F&I”) gross profit up 2%; same store F&I gross profit per retail unit of $2,594, up 6% On a trailing quarter cost of sales basis, the Franchised Dealerships Segment had 58 days’ supply of new vehicle inventory (including in-transit) and 32 days’ supply of used vehicle inventory EchoPark Segment operating results include: Revenues of $580.5 million, up 4%; gross profit of $67.9 million, up 6% Retail used vehicle unit sales volume of 19,326, up 3% All-time record quarterly reported segment income of $16.2 million, all-time record quarterly adjusted segment income* of $12.6 million, and all-time record quarterly adjusted EBITDA* of $18.6 million On a trailing quarter cost of sales basis, the EchoPark Segment had 40 days’ supply of used vehicle inventory Powersports Segment operating results include: First quarter record revenues of $40.9 million, up 19%; first quarter record gross profit of $10.1 million, up 19% Segment loss of $2.0 million, a 43% improvement from a segment loss of $3.5 million in the prior year period, and adjusted EBITDA loss* of $0.1 million, an 86% improvement from an adjusted EBITDA loss* of $0.7 million in the prior year period (note that the first quarter has seasonally lower demand ahead of peak powersports industry demand in the second and third quarters) * Represents a non-GAAP financial measure — please refer to the discussion and reconciliation of non-GAAP financial measures below.
Dividend
Sonic’s Board of Directors approved an 8% increase to the quarterly cash dividend, to $0.41 per share, payable on July 15, 2026 to all stockholders of record on June 15, 2026.
First Quarter 2026 Earnings Conference Call
Senior management will hold a conference call today at 11:00 A.M. (Eastern). Investor presentation and earnings press release materials will be accessible beginning prior to the conference call on the Company’s website at ir.sonicautomotive.com.
To access the live webcast of the conference call, please go to ir.sonicautomotive.com and select the webcast link at the top of the page. For telephone access to this conference call, please dial (877) 407-8289 (domestic) or +1 (201) 689-8341 (international) and ask to be connected to the Sonic Automotive First Quarter 2026 Earnings Conference Call. Dial-in access remains available throughout the live call; however, to ensure you are connected for the full call we suggest dialing in at least 10 minutes before the start of the call. A webcast replay will be available following the call for 14 days at ir.sonicautomotive.com.
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is on a quest to become the most valuable diversified automotive retail and service brand in America. Our Company culture thrives on creating, innovating, and providing industry-leading guest experiences, driven by strategic investments in technology, teammates, and ideas that ultimately fulfill ownership dreams, enrich lives, and deliver happiness to our guests and teammates. As one of the largest automotive and powersports retailers in America, we are committed to delivering on this goal while pursuing expansive growth and taking progressive measures to be the leader in these categories. Our new platforms, programs, and people are set to drive the next generation of automotive and powersports experiences. More information about Sonic Automotive can be found at www.sonicautomotive.com and ir.sonicautomotive.com.
About EchoPark Automotive
EchoPark Automotive is one of the most comprehensive retailers of nearly new pre-owned vehicles in America today. Our unique business model offers a best-in-class shopping experience and utilizes one of the most innovative technology-enabled sales strategies in our industry. Our approach provides a personalized and proven guest-centric buying process that consistently delivers award-winning guest experiences and superior value to car buyers nationwide, with savings of up to $3,000 versus the competition. Consumers have responded by putting EchoPark among the top national pre-owned vehicle retailers in products, sales, and service, while receiving the 2023 Consumer Satisfaction Award from DealerRater. EchoPark’s mission is in the name: Every Car, Happy Owner. This drives the experience for guests and differentiates EchoPark from the competition. More information about EchoPark Automotive can be found at www.echopark.com.
Forward-Looking Statements
Included herein are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements address our future objectives, plans and goals, as well as our intent, beliefs and current expectations regarding future operating performance, results and events, and can generally be identified by words such as “may,” “will,” “should,” “could,” “believe,” “expect,” “estimate,” “anticipate,” “intend,” “plan,” “foresee” and other similar words or phrases. You should not place undue reliance on these statements, and you are cautioned that these forward-looking statements are not guarantees of future performance. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risks and uncertainties that could cause actual results or trends to differ materially from management’s views, including, without limitation, the effects of tariffs on vehicle and parts pricing and supply, the effects of tariffs on consumer demand, economic conditions in the markets in which we operate, supply chain disruptions and manufacturing delays, labor shortages, the impacts of inflation and changes in interest rates, new and used vehicle industry sales volume, future levels of consumer demand for new and used vehicles, anticipated future growth in each of our operating segments, the success of our operational strategies and investment in new technologies, the rate and timing of overall economic expansion or contraction, the integration of acquisitions, cybersecurity incidents and other disruptions to our information systems, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and other reports and information filed with the United States Securities and Exchange Commission (the “SEC”). The Company does not undertake any obligation to update forward-looking information, except as required under federal securities laws and the rules and regulations of the SEC. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Non-GAAP Financial Measures
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income, adjusted earnings per diluted share, adjusted SG&A expenses, adjusted SG&A expenses as a percentage of gross profit, adjusted segment income (loss), and adjusted EBITDA (loss). As required by SEC rules, the Company has provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in the schedules included in this press release. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosures and provide a meaningful presentation of the Company’s results.
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Results of Operations - Consolidated
Three Months Ended March 31,
Better / (Worse)
2026
2025
% Change
(In millions, except per share
amounts)
Revenues:
Retail new vehicles
$
1,607.4
$
1,656.3
(3
)%
Fleet new vehicles
20.7
22.1
NM
Total new vehicles
1,628.1
1,678.4
(3
)%
Used vehicles
1,269.6
1,225.0
4
%
Wholesale vehicles
71.8
82.7
NM
Total vehicles
2,969.5
2,986.1
(1
)%
Parts, service and collision repair
516.6
474.4
9
%
Finance, insurance and other, net
202.4
190.8
6
%
Total revenues
3,688.5
3,651.3
1
%
Cost of sales:
Retail new vehicles
(1,522.9
)
(1,566.9
)
3
%
Fleet new vehicles
(20.3
)
(21.5
)
6
%
Total new vehicles
(1,543.2
)
(1,588.4
)
3
%
Used vehicles
(1,221.1
)
(1,178.6
)
(4
)%
Wholesale vehicles
(73.4
)
(84.1
)
13
%
Total vehicles
(2,837.7
)
(2,851.1
)
—
%
Parts, service and collision repair
(252.0
)
(233.8
)
(8
)%
Total cost of sales
(3,089.7
)
(3,084.9
)
—
%
Gross profit
598.8
566.4
6
%
Selling, general and administrative expenses
(427.0
)
(380.3
)
(12
)%
Impairment charges
(0.4
)
(1.4
)
NM
Depreciation and amortization
(38.7
)
(39.7
)
3
%
Operating income (loss)
132.7
145.0
(8
)%
Other income (expense):
Interest expense, floor plan
(19.4
)
(20.0
)
3
%
Interest expense, other, net
(28.3
)
(27.6
)
(3
)%
Other income (expense), net
0.1
—
NM
Total other income (expense)
(47.6
)
(47.6
)
—
%
Income before taxes
85.1
97.4
(13
)%
Provision for income taxes - benefit (expense)
(24.3
)
(26.8
)
9
%
Net income
$
60.8
$
70.6
(14
)%
Basic earnings (loss) per common share
$
1.81
$
2.09
(13
)%
Basic weighted-average common shares outstanding
33.6
33.9
1
%
Diluted earnings (loss) per common share
$
1.79
$
2.04
(12
)%
Diluted weighted-average common shares outstanding
34.0
34.6
2
%
Dividends declared per common share
$
0.38
$
0.30
27
%
NM = Not Meaningful
Franchised Dealerships Segment - Reported
Three Months Ended March 31,
Better / (Worse)
2026
2025
% Change
(In millions, except unit and per unit data)
Revenues:
Retail new vehicles
$
1,585.2
$
1,636.9
(3
)%
Fleet new vehicles
20.7
22.1
NM
Total new vehicles
1,605.9
1,659.0
(3
)%
Used vehicles
768.7
745.6
3
%
Wholesale vehicles
43.9
54.6
NM
Total vehicles
2,418.5
2,459.2
(2
)%
Parts, service and collision repair
509.3
467.4
9
%
Finance, insurance and other, net
139.3
130.6
7
%
Total revenues
3,067.1
3,057.2
—
%
Gross Profit:
Retail new vehicles
81.2
86.7
(6
)%
Fleet new vehicles
0.4
0.6
(33
)%
Total new vehicles
81.6
87.3
(7
)%
Used vehicles
40.5
39.9
2
%
Wholesale vehicles
(1.8
)
(1.0
)
(80
)%
Total vehicles
120.3
126.2
(5
)%
Parts, service and collision repair
261.1
237.2
10
%
Finance, insurance and other, net
139.3
130.6
7
%
Total gross profit
520.7
494.0
5
%
Selling, general and administrative expenses
(374.4
)
(325.9
)
(15
)%
Impairment charges
(0.4
)
—
NM
Depreciation and amortization
(31.7
)
(33.4
)
5
%
Operating income
114.2
134.7
(15
)%
Other income (expense):
Interest expense, floor plan
(16.0
)
(16.3
)
2
%
Interest expense, other, net
(27.3
)
(26.6
)
(3
)%
Other income (expense), net
0.1
0.1
NM
Total other income (expense)
(43.2
)
(42.8
)
(1
)%
Income before taxes
71.0
91.9
(23
)%
Add: Impairment charges
0.4
—
NM
Segment income
$
71.4
$
91.9
(22
)%
Unit Sales Volume:
Retail new vehicles
25,830
28,082
(8
)%
Fleet new vehicles
337
383
(12
)%
Total new vehicles
26,167
28,465
(8
)%
Used vehicles
26,335
25,441
4
%
Wholesale vehicles
4,713
6,195
(24
)%
Retail new & used vehicles
52,165
53,523
(3
)%
Used-to-New Ratio
1.02
0.91
12
%
Gross Profit Per Unit:
Retail new vehicles
$
3,144
$
3,089
2
%
Fleet new vehicles
$
1,264
$
1,444
(12
)%
New vehicles
$
3,120
$
3,067
2
%
Used vehicles
$
1,539
$
1,568
(2
)%
Finance, insurance and other, net
$
2,670
$
2,439
9
%
NM = Not Meaningful
Note: Reported Franchised Dealerships Segment results include (i) same store results from the “Franchised Dealerships Segment - Same Store” table below and (ii) the effects of acquisitions, open points, dispositions and holding company impacts for the periods reported. All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.
Franchised Dealerships Segment - Same Store
Three Months Ended March 31,
Better / (Worse)
2026
2025
% Change
(In millions, except unit and per unit data)
Revenues:
Retail new vehicles
$
1,485.5
$
1,617.0
(8
)%
Fleet new vehicles
18.8
22.0
(15
)%
Total new vehicles
1,504.3
1,639.0
(8
)%
Used vehicles
746.2
732.5
2
%
Wholesale vehicles
41.4
53.6
(23
)%
Total vehicles
2,291.9
2,425.1
(5
)%
Parts, service and collision repair
483.5
462.2
5
%
Finance, insurance and other, net
130.6
128.3
2
%
Total revenues
2,906.0
3,015.6
(4
)%
Gross Profit:
Retail new vehicles
74.2
86.5
(14
)%
Fleet new vehicles
0.5
0.6
(17
)%
Total new vehicles
74.8
87.1
(14
)%
Used vehicles
39.3
39.5
(1
)%
Wholesale vehicles
(1.7
)
(0.7
)
(143
)%
Total vehicles
112.4
125.9
(11
)%
Parts, service and collision repair
247.1
234.5
5
%
Finance, insurance and other, net
130.6
128.3
2
%
Total gross profit
$
490.1
$
488.7
—
%
Unit Sales Volume:
Retail new vehicles
24,725
27,598
(10
)%
Fleet new vehicles
317
383
(17
)%
Total new vehicles
25,042
27,981
(11
)%
Used vehicles
25,636
24,832
3
%
Wholesale vehicles
4,519
5,968
(24
)%
Retail new & used vehicles
50,361
52,430
(4
)%
Used-to-New Ratio
1.04
0.90
16
%
Gross Profit Per Unit:
Retail new vehicles
$
3,002
$
3,135
(4
)%
Fleet new vehicles
$
1,717
$
1,444
19
%
New vehicles
$
2,986
$
3,112
(4
)%
Used vehicles
$
1,533
$
1,592
(4
)%
Finance, insurance and other, net
$
2,594
$
2,448
6
%
Note: All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.
EchoPark Segment - Reported
Three Months Ended March 31,
Better / (Worse)
2026
2025
% Change
(In millions, except unit and per unit data)
Revenues:
Used vehicles
$
491.8
$
473.7
4
%
Wholesale vehicles
27.3
27.3
NM
Total vehicles
519.1
501.0
4
%
Finance, insurance and other, net
61.4
58.7
5
%
Total revenues
580.5
559.7
4
%
Gross Profit:
Used vehicles
6.3
5.4
17
%
Wholesale vehicles
0.2
(0.2
)
200
%
Total vehicles
6.5
5.2
25
%
Finance, insurance and other, net
61.4
58.7
5
%
Total gross profit
67.9
63.9
6
%
Selling, general and administrative expenses
(42.7
)
(44.8
)
5
%
Impairment charges
—
(0.2
)
NM
Depreciation and amortization
(5.7
)
(5.2
)
(10
)%
Operating income
19.5
13.7
42
%
Other income (expense):
Interest expense, floor plan
(3.0
)
(3.1
)
3
%
Interest expense, other, net
(0.3
)
(0.4
)
25
%
Other income (expense), net
—
(0.1
)
NM
Total other income (expense)
(3.3
)
(3.6
)
8
%
Income before taxes
16.2
10.1
60
%
Add: Impairment charges
—
0.2
NM
Segment income
$
16.2
$
10.3
57
%
Unit Sales Volume:
Used vehicles
19,326
18,798
3
%
Wholesale vehicles
3,127
3,150
(1
)%
Gross Profit Per Unit:
Total used vehicle and F&I
$
3,502
$
3,411
3
%
NM = Not Meaningful
EchoPark Segment - Same Market
Three Months Ended March 31,
Better / (Worse)
2026
2025
% Change
(In millions, except unit and per unit data)
Revenues:
Used vehicles
$
491.8
$
473.7
4
%
Wholesale vehicles
27.4
27.3
—
%
Total vehicles
519.2
501.0
4
%
Finance, insurance and other, net
61.6
59.1
4
%
Total revenues
580.8
560.1
4
%
Gross Profit:
Used vehicles
6.4
5.4
19
%
Wholesale vehicles
0.2
(0.2
)
200
%
Total vehicles
6.6
5.2
27
%
Finance, insurance and other, net
61.6
59.1
4
%
Total gross profit
$
68.2
$
64.3
6
%
Unit Sales Volume:
Used vehicles
19,326
18,798
3
%
Wholesale vehicles
3,127
3,150
(1
)%
Gross Profit Per Unit:
Total used vehicle and F&I
$
3,518
$
3,432
3
%
Note: All currently operating EchoPark stores in a local geographic market are included within the same market group as of the first full month following the first anniversary of the market's opening.
Powersports Segment - Reported
Three Months Ended March 31,
Better / (Worse)
2026
2025
% Change
(In millions, except unit and per unit data)
Revenues:
Retail new vehicles
$
22.3
$
19.4
15
%
Used vehicles
9.2
5.7
61
%
Wholesale vehicles
0.2
0.8
NM
Total vehicles
31.7
25.9
22
%
Parts, service and collision repair
7.4
7.0
6
%
Finance, insurance and other, net
1.8
1.5
20
%
Total revenues
40.9
34.4
19
%
Gross Profit:
Retail new vehicles
3.2
2.7
19
%
Used vehicles
1.6
1.1
45
%
Wholesale vehicles
—
(0.2
)
100
%
Total vehicles
4.8
3.6
33
%
Parts, service and collision repair
3.5
3.4
3
%
Finance, insurance and other, net
1.8
1.5
20
%
Total gross profit
10.1
8.5
19
%
Selling, general and administrative expenses
(9.9
)
(9.6
)
(3
)%
Impairment charges
—
(1.1
)
NM
Depreciation and amortization
(1.2
)
(1.2
)
—
%
Operating income
(1.0
)
(3.4
)
71
%
Other income (expense):
Interest expense, floor plan
(0.4
)
(0.5
)
20
%
Interest expense, other, net
(0.7
)
(0.7
)
—
%
Other income (expense), net
0.1
—
NM
Total other income (expense)
(1.0
)
(1.2
)
17
%
Loss before taxes
(2.0
)
(4.6
)
57
%
Add: Impairment charges
—
1.1
NM
Segment loss
$
(2.0
)
$
(3.5
)
43
%
Unit Sales Volume:
Retail new vehicles
1,124
993
13
%
Used vehicles
832
578
44
%
Wholesale vehicles
49
60
(18
)%
Gross Profit Per Unit:
Retail new vehicles
$
2,891
$
2,681
8
%
Used vehicles
$
1,938
$
1,823
6
%
Finance, insurance and other, net
$
907
$
943
(4
)%
NM = Not Meaningful
Powersports Segment - Same Store
Three Months Ended March 31,
Better / (Worse)
2026
2025
% Change
(In millions, except unit and per unit data)
Revenues:
Retail new vehicles
$
22.3
$
18.8
19
%
Used vehicles
9.2
5.2
77
%
Wholesale vehicles
0.2
0.8
(75
)%
Total vehicles
31.7
24.8
28
%
Parts, service and collision repair
7.4
6.6
12
%
Finance, insurance and other, net
1.8
1.4
29
%
Total revenues
40.9
32.8
25
%
Gross Profit:
Retail new vehicles
3.2
2.6
23
%
Used vehicles
1.6
1.0
60
%
Wholesale vehicles
—
—
—
%
Total vehicles
4.8
3.6
33
%
Parts, service and collision repair
3.5
3.2
9
%
Finance, insurance and other, net
1.8
1.4
29
%
Total gross profit
$
10.1
$
8.2
23
%
Unit Sales Volume:
Retail new vehicles
1,124
969
16
%
Used vehicles
832
533
56
%
Wholesale vehicles
49
60
(18
)%
Retail new & used vehicles
1,956
1,502
30
%
Used-to-New Ratio
0.74
0.55
35
%
Gross Profit Per Unit:
Retail new vehicles
$
2,891
$
2,709
7
%
Used vehicles
$
1,938
$
1,797
8
%
Finance, insurance and other, net
$
907
$
952
(5
)%
Note: All currently operating powersports stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.
Sonic Automotive (SAH - Free Report) came out with quarterly earnings of $1.62 per share, beating the Zacks Consensus Estimate of $1.46 per share. This compares to earnings of $1.48 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +11.34%. A quarter ago, it was expected that this auto dealer would post earnings of $1.53 per share when it actually produced earnings of $1.52, delivering a surprise of -0.65%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Sonic Automotive, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $3.69 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.41%. This compares to year-ago revenues of $3.65 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Sonic Automotive shares have added about 18.5% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Sonic Automotive?While Sonic Automotive has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Sonic Automotive was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.67 on $3.86 billion in revenues for the coming quarter and $6.54 on $15.74 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Retail and Whole Sales is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, AutoNation (AN - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 1.
This auto retailer is expected to post quarterly earnings of $4.71 per share in its upcoming report, which represents a year-over-year change of +0.6%. The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level.
AutoNation's revenues are expected to be $6.66 billion, down 0.5% from the year-ago quarter.
For the quarter ended March 2026, Sonic Automotive (SAH - Free Report) reported revenue of $3.69 billion, up 1% over the same period last year. EPS came in at $1.62, compared to $1.48 in the year-ago quarter.
The reported revenue represents a surprise of -1.41% over the Zacks Consensus Estimate of $3.74 billion. With the consensus EPS estimate being $1.46, the EPS surprise was +11.34%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Sonic Automotive performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Franchised Dealerships Segment - Same Store - Unit Sales Volume - Used vehicles: 25,636 versus 25,394 estimated by two analysts on average.Franchised Dealerships Segment - Same Store - Unit Sales Volume - Total new vehicles: 25,042 versus the two-analyst average estimate of 26,943.Franchised Dealerships Segment - Gross Profit Per Unit - New vehicles: $3,120.00 compared to the $2,975.72 average estimate based on two analysts.Franchised Dealerships Segment - Gross Profit Per Unit - Used vehicles: $1,539.00 versus $1,418.01 estimated by two analysts on average.Revenues- Franchised Dealerships: $3.07 billion compared to the $3.12 billion average estimate based on two analysts. The reported number represents a change of +0.3% year over year.Revenues- Franchised Dealerships Segment- Same Store- Used vehicles: $746.2 million versus the two-analyst average estimate of $750.42 million. The reported number represents a year-over-year change of +2%.Revenues- Franchised Dealerships Segment- Total new vehicles: $1.61 billion versus $1.68 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -3.2% change.Revenues- Franchised Dealerships Segment- Used vehicles: $768.7 million compared to the $779.94 million average estimate based on two analysts. The reported number represents a change of +3.1% year over year.Revenues- Franchised Dealerships Segment- Parts, service and collision repair: $509.3 million compared to the $500.2 million average estimate based on two analysts. The reported number represents a change of +9% year over year.Revenues- Franchised Dealerships Segment- Finance, insurance and other, net: $139.3 million compared to the $141.73 million average estimate based on two analysts. The reported number represents a change of +6.7% year over year.Revenues- EchoPark Segment- Used vehicles: $491.8 million versus the two-analyst average estimate of $464.06 million. The reported number represents a year-over-year change of +3.8%.Revenues- EchoPark Segment- Finance, insurance and other, net: $61.4 million versus the two-analyst average estimate of $59.47 million. The reported number represents a year-over-year change of +4.6%.View all Key Company Metrics for Sonic Automotive here>>>
Shares of Sonic Automotive have returned +12.4% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Published in earnings earnings-estimates-revisions earnings-surprise
Key Takeaways SAH Q1 EPS rose 9.5% to $1.62, beating estimates by 11% despite a revenue miss.SAH EchoPark posted record EBITDA and stronger segment income with improved efficiency.SAH boosted buybacks and raised dividends as liquidity held near $770M. Sonic Automotive, Inc. (SAH - Free Report) posted first-quarter 2026 adjusted earnings per share of $1.62, which increased 9.5% year over year and beat the Zacks Consensus Estimate of $1.46 by 11.34%. Total revenues rose 1.02% year over year to $3.69 billion but missed the Zacks Consensus Estimate of $3.74 billion by 1.41%.
Results reflected solid profitability even though demand was uneven across parts of the vehicle market. Strong performance in higher-margin areas helped balance the weaker spots. In particular, same-store finance and insurance profit per vehicle at franchised dealerships rose 6% year over year to $2,594.
SAH Results Show Mixed Revenue Trends by Line ItemOn a consolidated basis, SAH’s revenue mix was uneven across categories. New-vehicle revenues totaled $1.63 billion, down 3% year over year, while used-vehicle revenues increased 4% to $1.27 billion.
The higher-growth areas were Service and F&I businesses. Revenues from parts, service and collision repair increased 9% to $516.6 million, while finance, insurance and other income rose 6% to $202.4 million. These areas helped support overall revenue growth even as new-vehicle sales remained weak.
Sonic's Franchised Stores Lean on Service and Unit MixSonic’s Franchised Dealerships segment produced revenues of $3.07 billion, essentially flat year over year. Within the segment, parts, service and collision repair revenues climbed 9% to $509.3 million, while finance, insurance and other revenues improved 7% to $139.3 million.
Same-store revenues declined 4% year over year to $2.91 billion, with same-store retail new vehicle unit volume down 10% to 24,725 and same-store retail used vehicle unit volume up 3% to 25,636. Same-store fixed operations gross profit increased 5% to $247.1 million, and the same-store fixed operations gross profit margin improved 40 basis points to 51.1%, supporting profitability even as new-vehicle trends softened.
SAH's EchoPark Delivers Record Profitability MetricsSAH’s EchoPark segment remained a bright spot. Segment revenues increased 4% year over year to $580.5 million, and total gross profit grew 6% to $67.9 million, supported by higher finance and insurance contribution alongside modest vehicle gross profit improvement.
Profitability improved significantly compared to the previous year. EchoPark reported segment income of $16.2 million versus $10.3 million in the prior-year quarter, while adjusted segment income rose to $12.6 million from $10.1 million.
Adjusted EBITDA improved to $18.6 million compared with $15.8 million a year ago. SG&A expenses as a percentage of gross profit improved to 62.9% from 70.1%.
Sonic Powersports Expands, Seasonal Loss ImprovesSonic’s Powersports segment continued to scale from a smaller base, with first-quarter revenues increasing 19% year over year to $40.9 million. Gross profit rose 19% to $10.1 million, reflecting growth across vehicle sales and service activity.
Loss metrics improved noticeably compared to the same period last year, in line with seasonal patterns, as the first quarter is typically weaker before demand picks up later in the year.
The segment posted a loss of $2 million, better than the $3.5 million loss a year ago, while adjusted EBITDA loss narrowed to $0.1 million from $0.7 million. Sonic also pointed to an April 2026 acquisition of five Harley-Davidson dealerships that is expected to add roughly $100 million in annualized revenues to the Powersports segment.
SAH Steps Up Buybacks and Raises Quarterly DividendIn the first quarter, the company repurchased about 2.1 million shares for approximately $135.7 million.
Liquidity remained strong, supporting ongoing capital deployment activities. As of March 31, 2026, SAH had about $381 million in cash and floor plan deposits, with total liquidity of roughly $770 million. In April 2026, the board approved an additional $500 million in share repurchase authorization, lifting total remaining authorization to $528 million.
Sonic also approved an 8% dividend increase to $0.41 per share payable July 15, 2026, to shareholders of record on June 15, 2026.
Peer ReleasesLithia Motors (LAD - Free Report) posted first-quarter 2026 adjusted earnings of $7.34 per share, down 4% from $7.66 a year ago. However, the bottom line beat the Zacks Consensus Estimate of $7.06 by 4%. Quarterly revenues rose 1% year over year to $9.27 billion but came in below the Zacks Consensus Estimate of $9.36 billion by 0.9%.
As of March 31, 2026, Lithia’s cash, restricted cash and cash equivalents totaled $421.3 million, up from $341.8 million at year-end 2025. The board approved a quarterly dividend of 57 cents per share, expected to be paid on May 22, 2026, to shareholders of record on May 8, 2026.
Penske Automotive Group, Inc. (PAG - Free Report) reported first-quarter 2026 adjusted earnings of $3.05 per share, which declined 15.0% year over year but topped the Zacks Consensus Estimate of $2.91 by 4.8%. Total revenues of $7.86 billion dipped 1.1% from the year-ago quarter and missed the consensus mark of $7.95 billion by 1.1%.
The company paid $92.6 million in dividends and repurchased 170,393 shares for $26.4 million. Liquidity was approximately $1.3 billion, including $83.7 million in cash and $1.2 billion of availability under credit agreements and revolving mortgage facilities. Balance sheet leverage increased, with long-term debt rising to $2.21 billion as of March 31, 2026.
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Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.
SAH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. SAH has a Growth Style Score of A, forecasting year-over-year earnings growth of 3% for the current fiscal year.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $6.80 per share. SAH also boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SAH should be on investors' short list.
On May 13, 2026, Sonic Automotive Inc (SAH) shares fell 3.1% to a current price of $76.12. The stock has experienced a 52-week range between $54.11 and $89.62.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.
SAH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.45; value investors should take notice.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.03 to $6.80 per share. SAH boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SAH should be on investors' short list.
From a technical perspective, Sonic Automotive, Inc. (SAH - Free Report) is looking like an interesting pick, as it just reached a key level of support. SAH's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.
Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.
This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.
SAH could be on the verge of a breakout after moving 15.5% higher over the last four weeks. Plus, the company is currently a #3 (Hold) on the Zacks Rank.
Looking at SAH's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 4 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on SAH for more gains in the near future.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.
SAH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Retail-Wholesale stock. SAH has a Momentum Style Score of A, and shares are up 4.6% over the past four weeks.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $6.80 per share. SAH also boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SAH should be on investors' short list.
, /PRNewswire/ -- Sonic Automotive, Inc. (NYSE: SAH), today announced it has been recognized as one of the Most Trustworthy Companies in America by Newsweek. This recognition is a powerful validation of Sonic's unwavering commitment to its purpose, its people, and the millions of guests it serves every year.
Sonic Automotive Most Trustworthy Companies in America
EchoPark Automotive and Sonic Powersports logos The award acknowledges Sonic as one of only 700 companies selected from over 100,000 reviewed across 23 industries, based on surveys of 25,000 customers, employees, and investors. Notably, Sonic Automotive is the only automotive retailer among the 24 companies named in the "Automotive and Components" category. Among the honored brands in the category is Harley-Davidson, a testament to Sonic Powersports owning and operating 13 Harley-Davidson locations, including Black Hills Harley-Davidson, the nation's largest Harley-Davidson dealership serving the Sturgis, South Dakota area.
For 60 years, Sonic Automotive has been guided by a singular purpose, to deliver an experience for our guests and our teammates that fulfills dreams, enriches lives, and delivers happiness. This purpose transcends every division of the company, from its new vehicle Franchised Dealerships to EchoPark Automotive and Sonic Powersports, serving guests whether they are pursuing life on two wheels, four wheels, or no wheels, or simply seeking exceptional service. Across every experience, one standard remains constant, namely exceptional, human-centered service that earns trust.
Founded in 1966 by Bruton Smith and grown into a Fortune 300 leader under the leadership of Chairman and Chief Executive Officer David B. Smith, Sonic Automotive today encompasses:
11,000+ teammates 173 automotive and powersports franchises, including EchoPark 145 locations across 90 cities in 21 states That commitment has resulted in nearly:
7 million vehicles sold 40 million service experiences delivered 1 million+ 5-star reviews earned Together, these milestones are proof of the trust earned one experience at a time.
"This recognition from Newsweek is incredibly meaningful because it reflects something we've believed for six decades—trust is earned through people and purpose, not through just words," shared David B. Smith, Chairman and Chief Executive Officer of Sonic Automotive. "My father, Bruton Smith, built this company on the idea that if you take care of people the right way, everything else follows. Today, that belief is alive in every one of our 11,000 teammates. That's why we've earned this trust, and why we will continue to earn it every day."
While Sonic Automotive may not always be the name on the front of every store, it is the foundation behind every experience delivered. Its reputation has not been built through brand awareness alone, but through millions of moments in which expectations were exceeded, and trust was earned. As Sonic Automotive continues to evolve the future of automotive and powersports retail, one thing remains unchanged, the experience will always come first.
"We've never set out to be known as a holding company," said Jeff Dyke, President of Sonic Automotive. "We've set out to be known for how we make people feel. Whether a guest walks into one of our franchise automotive dealerships, EchoPark stores, or one of our Sonic Powersports locations, the expectation is the same: exceptional, transparent, and human. That consistency is what builds trust at scale, and it's how our teammates show up every single day."
Sonic Automotive will use this award as a proof point at each of its locations. You can discover more about Sonic Automotive at SonicAuto.com or ir.sonicautomotive.com.
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is on a quest to become the most valuable diversified automotive retail and service brand in America. Our Company culture thrives on creating, innovating, and providing industry-leading guest experiences, driven by strategic investments in technology, teammates, and ideas that ultimately fulfill ownership dreams, enrich lives, and deliver happiness to our guests and teammates. As one of the largest automotive and powersports retailers in America, we are committed to delivering on this goal while pursuing expansive growth and taking innovative measures to be the leader in these categories. Our new platforms, programs, and people are set to drive the next generation of automotive and powersports experiences. More information about Sonic Automotive can be found at www.sonicautomotive.com and ir.sonicautomotive.com.
For Further Information, Please Contact:
Sonic Automotive Press Inquiries
Sonic Automotive Media Relations
[email protected]
On May 21, 2026, Sonic Automotive Inc (SAH) shares rose 3.0% to a current price of $75.90. This performance sits within a 52-week range of $54.11 to $89.62, ref
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Sonic Automotive (SAH - Free Report) is a stock many investors are watching right now. SAH is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
Investors will also notice that SAH has a PEG ratio of 0.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SAH's PEG compares to its industry's average PEG of 0.91. SAH's PEG has been as high as 0.74 and as low as 0.44, with a median of 0.53, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SAH has a P/S ratio of 0.16. This compares to its industry's average P/S of 0.19.
Finally, our model also underscores that SAH has a P/CF ratio of 8.93. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SAH's current P/CF looks attractive when compared to its industry's average P/CF of 9.97. SAH's P/CF has been as high as 10.08 and as low as 5.06, with a median of 6.80, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sonic Automotive is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SAH feels like a great value stock at the moment.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.
SAH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. SAH has a Growth Style Score of B, forecasting year-over-year earnings growth of 2.9% for the current fiscal year.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.17 to $6.79 per share. SAH boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SAH should be on investors' short list.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.
SAH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 12.13; value investors should take notice.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.30 to $6.92 per share. SAH boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SAH should be on investors' short list.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.
SAH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Retail-Wholesale stock. SAH has a Momentum Style Score of B, and shares are up 1.2% over the past four weeks.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.30 to $6.92 per share. SAH also boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SAH should be on investors' short list.
