Top 3 Picks
2026 Outlook
By 2026, the Auto Dealers sector is anticipated to grow driven by accelerating EV adoption and digital sales channels, with projections indicating a compound annual growth rate of around 5-7% amid increasing consumer preferences for sustainable and convenient purchasing options. Trends such as inventory optimization through technology and expansion into used car markets will likely bolster profitability, though potential headwinds like higher interest rates and regulatory shifts on emissions could moderate gains. Overall, the sector's outlook remains positive, supported by data from leading firms' market caps and scores, positioning it for sustained investor interest.
Complete Rankings
| Rank | Stock | Score | Price | Market Cap |
|---|---|---|---|---|
|
1
|
Casey's General Stores Inc
|
61.6 | $565.14 | $20.8B |
|
2
|
Group 1 Automotive, Inc.
|
60.8 | $399.12 | $5.8B |
|
3
|
Rush Enterprises Inc
|
59.5 | $55.73 | $4.1B |
|
4
|
CarMax Inc.
|
57.9 | $40.46 | $6.8B |
|
5
|
Copart Inc
|
57.5 | $38.52 | $43.6B |
|
6
|
AutoNation, Inc.
|
57.4 | $208.89 | $8.4B |
|
7
|
Carvana Co.
|
57.0 | $430.16 | $54.6B |
|
8
|
OPENLANE, Inc
|
55.7 | $30.80 | $3.0B |
|
9
|
America's Car Mart Inc
|
55.3 | $24.98 | $238M |
|
10
|
Lithia Motors, Inc.
|
54.6 | $330.00 | $8.3B |
|
11
|
Camping World Holdings, Inc.
|
53.6 | $9.79 | $1.0B |
|
12
|
Asbury Automotive Group, Inc.
|
53.0 | $241.26 | $4.9B |
|
13
|
MURPHY USA INC.
|
52.5 | $415.01 | $7.6B |
|
14
|
Rush Enterprises Inc
|
51.6 | $55.82 | $4.5B |
|
15
|
Kaixin Holdings Ordinary Shares
|
51.1 | $6.78 | $9M |
In-Depth Analysis: Top Auto Dealers Stocks
CASY
Casey's General Stores Inc serves as convenience store chain with its 2,900 locations, positioned in the Midwest United States. About half of Casey's stores are located in rural towns with populations under 5,000. While fueling stations serve as a key traffic driver, about two-thirds of the company's gross profit stems from in-store sales of grocery items, prepared meals, and general …
Casey's General Stores Inc matters in the Auto Dealers sector due to its extensive network of 2,900 Midwest locations, half of which are in rural areas, providing essential fuel services that support vehicle-dependent communities and indirectly bolster auto-related activities. As fueling stations drive significant traffic, representing about two-thirds of operations, Casey's plays a key role in the regional fuel supply chain that complements auto dealers by ensuring accessible gasoline and convenience for drivers.
Casey's exhibits moderate profitability with a 3.6% profit margin, indicating efficient cost management in a competitive retail environment, though it suggests vulnerability to economic fluctuations. The company's strong financial health is evident from a 17.0% ROE and 14.2% revenue growth, demonstrating effective equity utilization and expansion potential despite a high P/E ratio of 34.3 that reflects investor expectations for future growth.
Casey's robust 14.2% revenue growth, driven by its strategic rural positioning and fuel services, positions it for sustained demand in the Midwest by 2026, potentially outpacing sector peers amid rising vehicle usage. With a solid 17.0% ROE indicating efficient capital returns, the stock's 34.3 P/E ratio underscores market confidence in earnings expansion, making it an attractive buy for investors seeking exposure to convenience retail growth. Furthermore, as economic recovery boosts consumer spending, Casey's expansion into underserved markets could enhance shareholder value through increased store traffic and profitability by 2026.
GPI
Group 1 owns and operates 39 collision centers and 260 automotive dealerships in the US and the UK, offering 35 brands of automobiles altogether. Slightly over half of the stores are in the US with locations mostly in metropolitan areas in 17 states in the Northeast, Southeast, Midwest, and California. Texas alone contributed 33.5% of new-vehicle unit volume in 2024 …
Group 1 Automotive matters in the Auto Dealers sector due to its extensive network of 260 dealerships and 39 collision centers across the US and UK, offering 35 brands and serving metropolitan areas in 17 US states, which enhances its market reach and competitive edge in high-demand regions. This strategic positioning allows the company to capitalize on urban consumer trends and diversify revenue streams in a fragmented industry.
Group 1 Automotive's profitability is modest, with a 1.7% profit margin indicating thin margins typical in the auto retail sector, but its 12.4% ROE demonstrates efficient use of equity to generate returns, reflecting solid financial health. Additionally, the company's 10.8% revenue growth highlights strong top-line expansion, supported by its operational scale, though the 13.7 P/E ratio suggests the stock is reasonably valued relative to earnings.
Investors should consider buying GPI in 2026 given its 10.8% revenue growth, which signals ongoing demand in the US and UK markets, potentially driven by urban expansion and new vehicle trends. The 12.4% ROE indicates effective capital management, enabling the company to reinvest in growth opportunities like electric vehicles or digital sales platforms. Furthermore, with a P/E ratio of 13.7, the stock appears undervalued compared to peers, offering potential upside as the auto sector recovers and expands post-2024 economic cycles.
RUSHA
Rush Enterprises Inc is a full-service, integrated retailer of commercial vehicles and related services. The company operates in a single segment; Truck Segment includes the operation of a network of commercial vehicle dealerships under the name Rush Truck Centers. It sells commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, and Blue Bird and also provides one-stop service …
Rush Enterprises Inc matters in the Auto Dealers sector as a specialized provider of commercial vehicles and integrated services through its extensive network of Rush Truck Centers, serving a critical niche that supports business and industrial transportation needs. This focus differentiates it from general auto dealers, positioning it as a key player in the commercial vehicle market, which is essential for economic activity.
Rush Enterprises exhibits moderate profitability with a 3.6% profit margin, indicating efficient cost management in a competitive sector, while its 12.8% ROE demonstrates effective use of shareholder equity to generate returns. However, the -0.8% revenue growth signals potential short-term challenges, though the 16.1 P/E ratio suggests the stock is reasonably valued relative to earnings.
By 2026, Rush Enterprises could benefit from an anticipated rebound in commercial vehicle demand, leveraging its 12.8% ROE to deliver strong returns as economic conditions improve. The 16.1 P/E ratio indicates the stock is attractively priced compared to industry averages, offering upside potential for investors seeking exposure to the Auto Dealers sector. Additionally, the company's established dealership network and a Tradestie Score of 59.5 suggest resilience and growth opportunities in a recovering market.
KMX
CarMax sells, finances, and services used and new cars through a chain of over 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales were 83% of fiscal 2025 revenue and wholesale about 17%, with the remaining portion composed of extended service plans …
CarMax is a leading innovator in the Auto Dealers sector, pioneering a customer-friendly used car retail model with over 250 stores that emphasize transparency and convenience, making it a benchmark for competitors. As used-vehicle sales constitute 83% of its fiscal 2025 revenue, the company plays a pivotal role in shaping the used car market, which is increasingly vital amid fluctuations in new vehicle availability.
CarMax's profit margin of 1.6% indicates slim profitability, typical for the competitive auto retail industry, but its ROE of 7.5% reflects moderate efficiency in generating returns from equity. However, the -6.7% revenue growth highlights potential challenges in demand and economic conditions, warranting caution on overall financial health.
CarMax's P/E ratio of 12.9 positions it as undervalued relative to the sector average, presenting an opportunity for significant upside as the used car market stabilizes and demand rebounds in 2026. The company's extensive network of over 250 stores and dominant focus on used vehicles, which comprised 83% of fiscal 2025 revenue, provide resilience against new car supply disruptions and support potential growth in financing and services. Additionally, with an ROE of 7.5%, CarMax demonstrates effective equity utilization, making it an attractive buy for investors anticipating economic recovery and increased consumer spending in 2026.
CPRT
Based in Dallas, Copart operates an online salvage vehicle auction with operations in 11 countries across North America, Europe, and the Middle East, facilitating over 3.5 million transactions annually. The company utilizes its virtual bidding platform, VB3, to connect vehicle sellers with over 750,000 registered buyers around the world. Buyers primarily consist of vehicle dismantlers, rebuilders, individuals and used vehicle …
Copart matters in the Auto Dealers sector as a pioneer in online salvage vehicle auctions, operating in 11 countries and handling over 3.5 million transactions annually through its VB3 platform, which efficiently connects sellers with over 750 buyers and sets a standard for digital automotive commerce.
Copart exhibits strong profitability with a 34.2% profit margin and an 18.1% ROE, demonstrating efficient cost management and effective use of shareholder equity. However, its modest 0.7% revenue growth highlights potential challenges in scaling operations, though the 23.2 P/E ratio suggests the stock is reasonably valued relative to earnings.
By 2026, investors should consider buying CPRT due to its robust profitability, evidenced by a 34.2% profit margin and 18.1% ROE, which underpin potential for sustained earnings growth amid rising demand for digital auction platforms. The company's global reach across 11 countries and over 3.5 million annual transactions positions it to benefit from the growing salvage vehicle market, driven by increasing vehicle electrification and recycling trends. Additionally, with a Tradestie Score of 57.5, indicating moderate appeal, CPRT's innovative VB3 technology could capture further market share as the auto sector shifts online.
AN
AutoNation is the second-largest automotive dealer in the United States, with 2024 revenue of about $27 billion and over 240 dealerships, plus 52 collision centers. The firm also has 26 AutoNation USA used-vehicle stores, a captive lender, four auction sites, and three parts distributors across 20 states primarily in Sunbelt metropolitan areas. New-vehicle sales account for nearly half of revenue; …
AutoNation is a key player in the Auto Dealers sector as the second-largest automotive dealer in the U.S., generating $27 billion in revenue in 2024 through its extensive network of over 240 dealerships and 52 collision centers across 20 states. Its diversified operations, including 26 used-vehicle stores, a captive lender, four auction sites, and three parts distributors, make it a comprehensive provider in the automotive retail landscape.
AutoNation's 2.4% profit margin indicates slim but typical margins in the auto retail industry, yet its 27.2% ROE demonstrates strong efficiency in utilizing shareholder equity to generate profits. Coupled with 6.9% revenue growth in 2024 and a P/E ratio of 12.2, these metrics suggest a financially stable company with potential for sustained earnings.
AutoNation's 6.9% revenue growth and 27.2% ROE position it for strong performance in 2026, driven by its expansive dealership network and diversified services that could benefit from increasing auto demand. The P/E ratio of 12.2 indicates the stock is undervalued relative to earnings, offering attractive entry points for capital appreciation. Additionally, as the second-largest dealer, AutoNation is well-placed to capitalize on industry trends like electric vehicle adoption and market recovery by 2026.
CVNA
Carvana Co is an e-commerce platform for buying and selling used cars. The company derives revenue from used vehicle sales, wholesale vehicle sales and other sales and revenues. The other sales and revenues include sales of loans originated and sold in securitization transactions or to financing partners, commissions received on VSCs and sales of GAP waiver coverage. The foundation of …
Carvana Co. matters in the Auto Dealers sector as its e-commerce platform for used car sales disrupts traditional dealerships by offering a convenient online buying and selling experience, capturing a growing share of the digital auto market. This innovation has driven impressive revenue growth of 54.5%, positioning the company as a key player in modernizing the industry.
Carvana's profitability is modest with a 3.4% profit margin, suggesting challenges in cost efficiency, but its financial health is robust, evidenced by a 68.2% ROE that indicates effective use of equity to generate returns. The 54.5% revenue growth further supports a scalable business model, despite a high P/E ratio of 91.0 signaling high market expectations for future earnings.
Carvana's rapid revenue growth of 54.5% underscores its potential for continued expansion in the e-commerce auto sector, making it an appealing investment by 2026 as online car sales are expected to surge. The company's exceptional ROE of 68.2% demonstrates strong equity efficiency, enabling it to reinvest profits and capture more market share. Additionally, with the P/E ratio of 91.0 potentially justified by sustained growth, investors could see significant upside as Carvana solidifies its leadership in digital used vehicle transactions.
KAR
Openlane Inc provides a digital marketplace for used vehicles, connecting sellers and buyers in North America and Europe for fast and transparent transactions. Its services include financing, repossessions, repairs, transportation, warranty, and inventory management. The company operates used-vehicle auctions and has two main segments: Marketplace and Finance, with majority revenue coming from the Marketplace segment, which to used vehicle remarketing, …
Openlane Inc matters in the Auto Dealers sector as it leads the digital transformation of used vehicle transactions, providing an efficient online marketplace that connects buyers and sellers across North America and Europe, while offering integrated services like financing and inventory management. This positions the company as a key innovator in enhancing transparency and operational efficiency in a traditionally fragmented industry.
Openlane's 9.0% profit margin and 8.6% ROE indicate moderate profitability and reasonable equity efficiency, reflecting a stable financial health amid sector challenges. However, with 8.4% revenue growth and a P/E ratio of 35.1, the company shows promising expansion potential, though the Tradestie Score of 55.7 suggests average overall investment appeal.
Openlane's 8.4% revenue growth demonstrates strong momentum in the digital used vehicle market, positioning it for continued expansion by 2026 as online automotive transactions accelerate. The P/E ratio of 35.1 signals investor optimism for future earnings growth, supported by the company's comprehensive services that could capture increasing demand for streamlined vehicle sales solutions. Additionally, with a Tradestie Score of 55.7 indicating moderate potential, Openlane is well-placed to benefit from sector trends like e-commerce adoption and economic recovery in auto markets.
CRMT
America's Car-Mart Inc is an automotive retailer in the U.S. focused exclusively on the Integrated Auto Sales and Finance segment of the used car market. The company's operations are principally conducted through its two operating subsidiaries, America's Car Mart Inc and Colonial Auto Finance. It predominantly sells older model used vehicles and provides financing for substantially all of its customers. …
America's Car-Mart Inc stands out in the Auto Dealers sector by specializing in the used car market with an integrated sales and finance model, catering to subprime borrowers and capturing a niche segment that traditional dealers often overlook. This focus enables it to maintain a presence in a resilient market, as evidenced by its operations through subsidiaries like Colonial Auto Finance, which enhance customer accessibility and loyalty.
The company's negative profit margin of -1.0% and ROE of -2.6% highlight ongoing challenges in generating profits and efficiently utilizing shareholder equity, indicating potential financial strain. Despite this, a revenue growth of 0.8% demonstrates modest top-line expansion, suggesting some operational stability in a competitive sector.
By 2026, America's Car-Mart could benefit from an expected rebound in the used car market, driven by its integrated finance model that may improve customer retention and margins as economic conditions stabilize. The recent 0.8% revenue growth signals early signs of recovery, potentially leading to profitability if cost efficiencies are achieved. Additionally, with a Tradestie Score of 55.3/100, the stock presents an opportunity for upside as the company leverages its niche expertise in subprime lending to gain market share.
LAD
Lithia Motors is a retailer of new and used vehicles and related services. The company offers over 50 brands of vehicles at nearly 500 stores globally across the US, Canada, and UK. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the US and we expect …
Lithia Motors stands out in the Auto Dealers sector as a major player with nearly 500 stores across the US, Canada, and UK, offering over 50 vehicle brands, which enables it to capture significant market share through strategic acquisitions and expansion into regional markets.
Lithia Motors' profit margin of 2.4% reflects the slim margins common in auto retail, but its ROE of 13.5% demonstrates effective equity utilization for returns, while a revenue growth of 4.9% and P/E ratio of 9.6 indicate moderate growth and potential undervaluation.
Lithia Motors' P/E ratio of 9.6 suggests the stock is undervalued, providing an attractive entry point for investors anticipating appreciation by 2026 amid continued revenue growth of 4.9%. The company's expansion strategy, including acquisitions in new markets, positions it for increased market share and profitability as the auto sector recovers. Additionally, with a Tradestie Score of 54.6, the firm offers a balanced risk-reward profile for long-term gains in a diversifying industry.
Methodology
Stocks are ranked using the Tradestie Score, a proprietary 0-100 rating that combines fundamental quality (profitability, balance sheet strength), growth metrics (revenue and earnings growth), valuation (P/E, PEG ratio), and momentum factors. Scores are updated daily based on the latest market data. Learn more about our methodology.