Lithia Motors's 15min Chart Indicates Bearish Trend with Bollinger Bands Narrowing.

Based on Lithia Motors' 15-minute chart, a narrowing of Bollinger Bands and a KDJ death cross, combined with a bearish marubozu at 07/17/2025 14:15, suggests a decrease in the magnitude of stock price fluctuations, a shift in momentum towards the downside with a potential for further decline, dominance of sellers in the market, and a continuation of bearish momentum.

Lithia Motors, Inc. (LAD) reported preliminary second-quarter 2025 results that demonstrated robust earnings growth and solid core operations. The company's earnings per diluted share (EPS) are expected to range between $9.70 and $10.00, representing a 23-27% increase year-over-year [1]. This strong performance is driven by a diversified revenue stream, including Driveway, GreenCars, and Driveway Finance Corporation, which have contributed significantly to earnings growth. The company's top-line revenue is projected to be between $9.4 billion and $9.6 billion, with same-store total revenue growth of 3.5% to 4.0% [1].

Lithia's financing operations stood out as a major contributor to earnings, with year-on-year growth of 110-155%, amounting to income between $15 million and $18 million [1]. The company's capital allocation strategy includes share repurchases, with 1.5% of outstanding shares repurchased in the quarter and 3% year-to-date [1]. Additionally, Lithia has been active in acquisitions, adding $400 million in annualized revenues through acquisitions so far in 2025, including the recent acquisition of two Mercedes-Benz dealerships in Tennessee and Mississippi [1].

Despite the positive earnings report, Lithia faces challenges from tariffs, which are putting pressure on margins and potentially impacting its aftersales business due to increased parts costs [1]. The stock has gained 25.3% over the past year compared to the industry's 15.5% growth, but analysts have mixed views on the stock. Benchmark reiterated a Buy rating with a $400 price target, while Goldman Sachs initiated coverage with a Neutral rating and a $340 price target [2].

Technical analysis of Lithia Motors' stock, based on its 15-minute chart, suggests a narrowing of Bollinger Bands and a KDJ death cross, indicating a decrease in the magnitude of stock price fluctuations and a shift in momentum towards the downside. A bearish marubozu at 07/17/2025 14:15 further suggests dominance of sellers in the market and a continuation of bearish momentum [3].

In conclusion, Lithia Motors reported strong preliminary Q2 2025 results, but the stock faces challenges from tariffs and mixed analyst sentiment. Technical analysis suggests a bearish trend, but investors should closely monitor earnings releases and other developments to assess the company's long-term prospects.

References:
[1] https://www.nasdaq.com/articles/lithia-motors-reports-preliminary-q2-results-earnings-rise-y-y
[2] https://za.investing.com/news/analyst-ratings/lithia-motors-stock-rises-as-benchmark-reiterates-buy-on-strong-q2-outlook-93CH-3791838