AutoNation, Inc. AN completed the acquisition of Groove Ford and Groove Mazda dealerships, effective March 31, 2025. The dealerships have been rebranded as AutoNation Ford Arapahoe and AutoNation Mazda Arapahoe. In 2024, these locations sold nearly 5,000 new and used vehicles, generating approximately $219 million in annual revenues.

Both dealerships are based in Englewood, CO, marking the first AutoNation Mazda and the second AutoNation Ford in the state. This acquisition expands AN’s presence in Colorado to a total of 13 Domestic, six Import and three AutoNation USA dealerships, primarily concentrated in the greater Denver area.

Per AutoNation’s CEO, Mike Manley, the acquisitions align with AutoNation’s strategy of strengthening its footprint in existing markets. By integrating these dealerships, the company can quickly leverage operational efficiencies, enhance its performance and deliver strong returns to shareholders.

Strategic acquisitions are boosting the company’s portfolio and prospects. The buyouts of Priority 1 Automotive, completed in November 2021, and Peacock Automotive’s 11 dealerships, completed in September 2021, have boosted the company’s annualized revenues. Additionally, the buyout of CIG Financial, completed in July 2022, has unlocked a significant upside for AutoNation’s F&I segment. 

The acquisition of four dealerships from Moreland Auto Group, completed in January 2023, is also fueling AutoNation’s annual revenues. The acquisition of RepairSmith, completed in January 2023, has expanded the company’s range of after-sales services. In the fourth quarter of 2024, AutoNation reported revenues of $7.21 billion, which rose from $6.77 billion reported in the corresponding quarter of 2023.

AN’s Zacks Rank & Key Picks

AutoNation carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are China Yuchai International Limited CYD, Aptiv PLC APTV and Strattec Security Corporation STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CYD’s 2025 sales and earnings indicates year-over-year growth of 9.17% and 36.84%, respectively. EPS estimates for 2025 have improved 25 cents in the past 60 days. 

The Zacks Consensus Estimate for APTV’s 2025 sales and earnings implies year-over-year growth of 0.67% and 16.93%, respectively. EPS estimates for 2025 and 2026 have improved 13 cents and 28 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for STRT’s 2025 sales indicates year-over-year growth of 2.61%. EPS estimates for 2025 and 2026 have improved 91 cents and $1.06, respectively, in the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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