Sonic Automotive (SAH) Stock: Buy, Sell, or Hold?
SAH - Sonic Automotive, Inc.
$63.22
2.54 (4.18%)
â˛
5d:
-0.46%
30d:
+1.35%
90d:
-36.67%
WAIT
LOW Confidence
Analysis Updated: Oct 22, 2026 12:00 AM ET
Earnings: Oct 29, 2026
6d
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Interactive Price Chart (1 Month)
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Bottom Line:
âšī¸ NEUTRAL: SAH is fairly priced but lacks strong directional signals. At -5.0% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
âšī¸ NEUTRAL: SAH is fairly priced but lacks strong directional signals. At -5.0% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$95.52
Based on 6.3% avg growth
INTRINSIC VALUE TODAY
$59.31
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 9.7x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SAH is currently trading at $63.22, which is considered fair relative to its 30-day fair value range of $59.71 to $67.85. From a valuation perspective, the stock is trading at a discount (Forward PE: 8.4) compared to its historical average (9.7). Remarkably, the market is currently pricing in an annual earnings decline of 5.0% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, SAH is in a strong downtrend. Immediate support is located at $59.84, while resistance sits at $66.26. The stock is showing strong short-term momentum, up 4.2% recently.
Market Sentiment: The stock scores a mixed 52/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $87.55 (+44.3%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, SAH is in a strong downtrend. Immediate support is located at $59.84, while resistance sits at $66.26. The stock is showing strong short-term momentum, up 4.2% recently.
Market Sentiment: The stock scores a mixed 52/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $87.55 (+44.3%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$59.71 -
$67.85
Company Quality Score
49/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
77.1%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (52/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+4.2%)
- BULLISH: Trading 44.3% below Wall St target ($87.55)
- WARNING: Composite score 48/100 in the bottom quintile â this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$59.71 -
$67.85
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$59.84
Resistance Level
$66.26
Current Trend
Strong Downtrend
Technical data as of
Oct 21, 2026
Fundamental Context
Forward P/E (Next Year Est.)
8.36
Wall Street Target
$87.55
(+44.3%)
Revenue Growth (YoY)
7.6%
Earnings Growth (YoY)
-12.3%
Profit Margin
1.4%
Valuation Discount vs History
-5.0% cheaper
PE vs Historical
8.4 vs 9.7
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.0%
(market-implied from PE analysis)
1-Year Target
$57.65
(-5%)
2-Year Target
$54.76
(-10%)
3-Year Target
$52.03
(-14%)
3-Yr Target (if PE normalizes)
(PE: 8â10)
$60.37
(-1%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 19.9, Growth: 8.6%)
$184.56
(+204%)
Base:
(SPY PE: 8.4, Growth: 8.6%)
$77.68
(+28%)
Bear:
(PE: 7.1, Growth: 8.6%)
$66.02
(+9%)
đ
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (10x PE), but valuation improves significantly next year (8x PE) as earnings recover.
Trailing PE: 10.21 | Current EPS (TTM): $6.27
Bull Case
$81.55
(+34%)
Analyst growth 15.8%, PE expands to 11.2
Base Case
$74.13
(+22%)
Market implied 15.8%, PE stable at 10.2
Bear Case
$43.54
(-28%)
Severe decline -20.0%, PE contracts to 8.7
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
đĄ
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 8.4 to 9.7
Stabilization Target:
$70.42
(+16.0%)
PE Expansion Potential:
+16.0%
Share & Embed Analysis
Last updated: October 22, 2026 12:52 PM ET
Data refreshes hourly during market hours. Next update: 1:52 PM
Data refreshes hourly during market hours. Next update: 1:52 PM
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Technical Signals Check
Is SAH showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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