David Zanoni
Momentum, growth at reasonable price, long-term horizon

Sonic Automotive: New Strategies Could Foster Significant Future Growth

Sonic Automotive (NYSE:SAH) has underperformed the S&P 500 since November 2013. The reason for this is because the company's EPS remained stagnant for 2013 and 2012 and it is expecting earnings growth to be minimal at only 1% for 2014. The stock is now undervalued as compared to its competitors and the S&P 500. This presents a good entry point for investors when focusing on the long-term. Sonic is implementing new strategies that should foster closer connections with customers. These strategies should help increase revenue & earnings and catalyze the stock if they prove to be successful.

Sonic Automotive makes its money through 123 franchises in 14 states, representing 25 brands of automobiles. It also operates 21 collision...

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