EchoPark

Is Sonic’s (SAH) EchoPark Unit the Sole Driver of the Stock?

Sonic Automotive’s SAH shares have rallied 23.2% over the past three months, outperforming the industry’s growth of 13.4%. The auto sector and S&P 500 declined 0.9% and 1%, respectively, in the same time frame. One of the leading automotive retailers in the United States, Sonic sports a Zacks Rank #1 (Strong Buy) and a VGM Score of A. Amid the rising demand for cars due to preference for personal mobility and economic growth, it looks well poised to maintain its bull run on the bourses. You can see the complete list of today’s Zacks #1 Rank stocks here.

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EchoPark: The Major Growth Engine of Sonic

Sonic’s EchoPark business, which operates independently from the franchised dealerships business, sells used cars and light trucks as well as arranges finance & insurance product sales for customers in

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EchoPark Used-Car Dealerships Gain Momentum In Q1 For Sonic Automotive

A more ambitious expansion of EchoPark dealerships — a network of used-car-only stores owned by new-car dealership chain Sonic Automotive — is off to a promising start, company executives said.

“We sold almost 20,000 cars,” in the first quarter at EchoPark dealerships, an increase of more than 40% vs. a year ago, said Sonic CEO David Smith, in a phone interview April 29, following up on Sonic’s first-quarter earnings announcement.

The increase is largely because Sonic is adding more EchoPark stores, but Smith said some new EchoPark locations are also reaching operating profits faster than expected. Newly added markets include Phoenix, Birmingham, Ala., and Charleston, S.C.

EchoPark revenues were $507.1 million for the quarter, up 53% vs. a year ago. Pre-tax earnings for EchoPark were $2 million, down 4%.

Sonic, based in Charlotte, N.C., opened its first EchoPark location in late 2014.

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