Stephens Neutral on Sonic Automotive (SAH)

Sonic Automotive Inc. (NYSE:SAH) is 1 of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.

Stephens, connected February 19, trimmed its people terms connected Sonic Automotive by 1.5% and retained its Equal Weight telephone connected the stock. The people terms update came arsenic a effect of the steadfast adjusting its 2026 forecasts and initiating its 2027 estimates, pursuing the merchandise of the company’s Q4 2025 net study a time before, connected February 18.

The net merchandise showed coagulated results for Sonic. It delivered adjusted EPS of $1.52, conscionable hardly beating thoroughfare statement estimates of $1.50 contempt a flimsy miss successful gross ($3.87 cardinal existent vs. $3.94 thoroughfare consensus).

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Even with a coagulated 4th (and a grounds twelvemonth successful revenue), Sonic’s absorption warned astir the imaginable interaction of rapidly rising conveyance prices, which would dampen user request successful 2026. Frank Dyke, Vice President of Retail Strategy during the Q&A conception of the net briefing, said that “The prices are conscionable getting excessively high,” with manufacturers starting to walk connected the costs much and much to consumers, “in a mode that we did not spot successful 2025.” He is present acrophobic that consumers whitethorn not beryllium capable to woody with overmuch more, which could pb to softer demand.

Sonic Automotive Inc. (NYSE:SAH) is an automotive retailer, selling some caller and utilized cars and providing maintenance, warranty, paint, and repair services. The institution is based successful Charlotte, North Carolina, and was founded successful January 1997 by Ollen Bruton Smith and Bryan Scott Smith.

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