Retail new car Gross Profits Per Unit (GPUs) sit at all-time highs, up about 150% from 2019. New and Used autos have seen inflation since the pandemic unlike anything seen in decades, particularly on the used side as prices have gone up ~40% since 2019, despite higher rates. That means peak earnings on auto dealers as we head into the recession. So, short the whole space, right? Not so fast. We think this space actually presents some really good pair opportunities given the variances in business profits, new/used exposure, end consumer demographics, balance sheet strength and quality of leadership.
On Wednesday November 22nd at 12:30 PM ET we’re hosting a call to detail out our view on the auto retail landscape. We’ll review the key data points pertaining to the cyclical nature of the industry, analyze the more recent unprecedented developments impacting the current supply and demand environment, and then explain where we think the industry is headed over the coming quarters and years and where the biggest opportunities are both long and short.
Relevant Tickers: PAG, AN, GPI, ABG, LAD, SAH, KMX, CVNA (currently on Short Bias List)
Call Details
Date/Time: Wednesday November 22nd at 12:30 PM EDT
Add To Calendar CLICK HERE
Live Video Link CLICK HERE
