Sonic Automotive, Inc. SAH recently announced the opening of its newest retail hub in Raleigh, NC. This expands its EchoPark Automotive brand. The new facility will be EchoPark’s 37th location to date and third in the state, and also add to the current Charlotte retail hub and Greensboro delivery center.
Customers will now be able to shop in person or take delivery of their purchase at the new Raleigh location after browsing through and choosing products on the EchoPark website, which boasts a wide range of premium quality, one- to four-year-old pre-owned vehicles with clean CarFax reports. Its seamless and transparent online purchase experience that offers below-market, no-haggle pricing (including taxes and fees), a strong trade-in vehicle offer and a variety of options to select from make it popular among users. From booking an appointment to assisting in doorstep delivery, the website ensures it all.
North Carolina is a vital market for Sonic, and the Raleigh site will further cement its footprint in the state and allow it to cater to the growing demand for pre-owned vehicles across the nation.
EchoPark, after its launch in 2014, has rapidly climbed up the success ladder as one of the most prominent players in the pre-owned automotive retail industry. Sonic has set an ambitious goal of 90% population coverage by 2025, provisionally aiming at retailing 575,000 vehicles and generating $14 billion in annual EchoPark revenues by 2025 while targeting a 2 million vehicle annual sales opportunity at maturity.
The EchoPark unit has been the major growth engine of the firm. The auto retailer witnessed record used vehicle unit sales of 77,835 in 2021, up 36.2% year over year. EchoPark revenues also hit a record high of $2.3 billion in 2021, up 65.3% year over year. Strong organic growth fueled by EchoPark expansion is likely to significantly boost Sonic’s prospects.
Shares of Sonic have fallen 14.8% over the past year compared with its industry’s 6.3% decline.
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Zacks Rank & Other Key Picks
SAH currently has a Zacks Rank #2 (Buy).
Other top-ranked players in the auto space include Harley-Davidson, Inc. HOG, Tesla, Inc. TSLA and LCI Industries LCII, each sporting a Zacks Rank #1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Harley-Davidson has an expected earnings growth rate of 2.2% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised around 27% upward in the past 60 days.
Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.6%, on average. The stock has lost 10.1% over the past year.
Tesla has an expected earnings growth rate of 44% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 4.4% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 33.3%, on average. The stock has risen 55.9% over the past year.
LCI Industries has an expected earnings growth rate of 26.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 15% upward in the past 60 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one. LCII pulled off a trailing four-quarter earnings surprise of 12.9%, on average. The stock has declined 24.8% over the past year.
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