On Tuesday, AutoNation, Inc. shares increased more than seven percent after the said company went beyond the expectations, having an increase of 15 percent, during its earnings for the third-quarter. Also, the company’s chief executive mentioned that the auto sales of U.S. are going to keep on rising in 2015.
The largest group of auto dealer in the US, closed at 55.58 dollars, increased 6.9 percent.
Mike Jackson, the chief executive officer, said that the recovery of the US from five years ago’s recession is going to continue until the year 2015. He is expecting the new US auto sales to go beyond 17 million units of vehicles for the very first time ever since the year 2001.
LMC Automotive, industry consultants, said on Monday that the new auto sales this 2014 is going to be 16.4 million.
On Tuesday, Standard and Poor’s raised stock of AutoNation from “hold” to “buy” and had its target price for 12 months increased for their stock by 3 dollars to 63 dollars for every share.
A robust profit was shown by AutoNation in its business for used cars, which helped in boosting its earnings for the third quarter, reaching 90 cents for each share.
