AutoNation (NYSE:AN) — AutoNation is America’s largest retail auto dealer. It owns and operates more than 250 new vehicle franchises in 15 states. Earnings have been higher for consecutive years and are expected to hit $2.50 in 2012 vs. $1.93 in 2011, then $2.80 in 2013. With the average age of vehicles on the road reaching more than eight years, there is a large pool of potential buyers, and AN should benefit from it. Second-quarter earnings came in at 66 cents per share compared to an expected 49 cents, thus the jump in price in July when it was reported.
Technically, the stock is in an erratic bull channel with a bottom at about $38 and top at $41. Because it is volatile, try to buy AN at under $39. The price target is $45.