Sonic Automotive Inc. (NYSE:SAH) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.
Stephens, on February 19, trimmed its target price on Sonic Automotive by 1.5% and retained its Equal Weight call on the stock. The target price update came as a result of the firm adjusting its 2026 forecasts and initiating its 2027 estimates, following the release of the company’s Q4 2025 earnings report a day before, on February 18.
The earnings release showed solid results for Sonic. It delivered adjusted EPS of $1.52, just barely beating street consensus estimates of $1.50 despite a slight miss in revenue ($3.87 billion actual vs. $3.94 street consensus).
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Even with a solid quarter (and a record year in revenue), Sonic’s management warned about the potential impact of rapidly rising vehicle prices, which would dampen consumer demand in 2026. Frank Dyke, Vice President of Retail Strategy during the Q&A segment of the earnings briefing, said that “The prices are just getting too high,” with manufacturers starting to pass on the costs more and more to consumers, “in a way that we did not see in 2025.” He is now concerned that consumers may not be able to deal with much more, which could lead to softer demand.
Sonic Automotive Inc. (NYSE:SAH) is an automotive retailer, selling both new and used cars and providing maintenance, warranty, paint, and repair services. The company is based in Charlotte, North Carolina, and was founded in January 1997 by Ollen Bruton Smith and Bryan Scott Smith.
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