Sonic Automotive Inc. (SAH) Shares Soar 1.86% to Record High

Sonic Automotive Inc. (SAH) shares surged to a record high today, with an intraday gain of 1.86%.

The strategy of buying SAH shares after they reached a recent high and holding for 1 week showed poor performance. The annualized return was -3.58%, indicating significant underperformance compared to the market. This suggests that relying solely on recent highs as a buying trigger and holding for a short duration is not a reliable strategy for SAH.

Sonic Automotive has recently hit a new 52-week high, trading as high as $83.31. The company has become the largest Jaguar Land Rover dealer group in the U.S. after acquiring four stores, a move expected to add approximately $500 million to its annual revenue. This acquisition represents a significant step forward for Sonic Automotive.

Analysts have taken note of Sonic Automotive's strategic moves. Benchmark analyst reiterated a Buy rating with a $76.00 price target, highlighting the supportive role of the luxury mix. B of A Securities also maintains a Buy rating and has raised the price target from $80 to $94. The company's quarterly revenue increased by 7.9% compared to the same quarter last year, and Sonic Automotive is identified as one of the undervalued momentum stocks gaining traction.