Why I think the Auto Trader Group share price is a winner

first_img Enter Your Email Address Jabran Khan has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Buying a car can be a nightmare, but thanks to technology and the people at Auto Trader (LSE: AUTO), the process of locating the perfect vehicle could not be easier. The buying part is still down to you, however.Background, rise and competitionFounded in 1975 by John Madjeski, (who would go on to own Reading FC, if you know your football) the original platform consisted of a printed magazine circulated weekly throughout different regions. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…By investing in new technology the website for Auto Trader arrived in 1996. 2008 saw the mobile site, before the popular mobile application became available in 2010.Fast forward to the current day and it is estimated that approximately 80% of UK automotive dealers use Auto Trader platforms. Across its platforms there are almost 60m visits per month, with the majority of those visits coming via mobile devices. Since Auto Trader’s emergence, many others have attempted to gatecrash the party and steal away some market share. Car Gurus and Motors.co.uk are just two traditional platforms currently navigating the industry. Throw into the mix that Facebook marketplace has exploded onto the scene and the ever growing popularity of free advertisement site Gumtree, it makes for an interesting smorgasbord of options for buyers and sellers. PerformanceWhen last year’s year end results were revealed, Auto Trader reported a 15% increase in pre-tax profit for the year. Pre-tax profit rose to £242.2m in the year to March 31 from £210.7m last year. Revenue increased 9% to £293m boosted by the launch of new products and higher yielding advertising packages. Reviewing the share price performance in the previous 12 months, Auto Trader has seen an approximately 30% increase. Impressive figures and the fact that the company expects a low double-digit increase in earnings in the coming year is a further sign of a blossoming business. Profits and dividend per share have increased year on year for the previous four years, which can only be a good omen. It is not a coincidence that within the last two months Goldman Sachs and UBS have upgraded Auto Trader based on “long term opportunities,” and “a more positive outlook on media.”What to do nowAnalysts at Liberium Capital calculate that Auto Trader’s market share is five times that of the next player, Gumtree, and as the leader in the market, Auto Trader “benefits from strong virtuous circle effects and very high barriers to entry.” Despite the ever increasing chance of an economic downturn, I feel Auto Trader possesses the ability to withstand general macroeconomic weakness and continue to flourish.If you are looking to invest in a stock that you will hold for a long time, and you’re ready to be patient and watch it grow, then I believe Auto Trader may be for you. Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares Why I think the Auto Trader Group share price is a winnercenter_img Image source: Getty Images. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Jabran Khan | Saturday, 22nd February, 2020 | More on: AUTO I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. See all posts by Jabran Khanlast_img

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