AutoNation (AN) Stock Forecast & Price Target

AutoNation, the second-largest automotive dealer in the U.S., is projected to generate approximately $27 billion in revenue for 2024, supported by a diverse portfolio that includes over 240 dealerships and 26 AutoNation USA used-vehicle stores. Recent trends indicate a robust performance in premium luxury unit sales, which rose by 4.9% year-over-year, alongside a 3.5% year-over-year growth in import unit sales, demonstrating strength in key market segments. Furthermore, the substantial increase in units acquired through Webuyyourcar.com, rising from 5% to 33% over the past five years, highlights the company's effective adaptation to changing consumer preferences and its commitment to enhancing operational efficiency.

AutoNation is projected to experience a 12.9% year-over-year decline in EBITDA for the fourth quarter of 2025, which raises concerns about the firm’s financial health. Additionally, the forecast for fiscal year 2026 estimates new gross profits per unit (GPUs) to drop to $2,200, a reduction of $370 compared to the previous year. Given these declines in key financial metrics, along with earnings estimates significantly below consensus, the outlook for AutoNation's stock appears unfavorable.