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LAD vs WSM
Which Stock Would AI Choose? Lithia Motors (LAD) vs. Williams-Sonoma (WSM) Stock Comparison
Key Takeaways
- Two very different retailers: LAD (Lithia Motors, the largest U.S. automotive retailer) and WSM (Williams-Sonoma, a digital-first home furnishings retailer) compete in separate consumer-cyclical niches with contrasting growth profiles.
- Momentum gap is wide: WSM has delivered roughly 47% year-to-date return versus a roughly 12% year-to-date decline for LAD, reflecting divergent market sentiment.
- Earnings quality differs: LAD posted a 9% increase in adjusted EPS (earnings per share) last quarter despite softer vehicle sales, while WSM expanded operating margin to 22.9% and raised full-year guidance.
- Valuation trade-off: LAD trades near a single-digit price-to-earnings ratio, while WSM carries a premium multiple in the mid-20s that reflects its stronger relative performance.
- Tickeron AI Verdict: On trend consistency, relative strength, and catalysts, Tickeron's AI currently favors WSM over LAD.
- For deeper coverage, explore LAD Major News and LAD Today's Price Move, as well as WSM Major News and WSM Today's Price Move.
- Discover the automated strategies currently leading the market by exploring Trending AI Robots.
Introduction
Investors comparing LAD and WSM are effectively weighing two distinct corners of consumer discretionary spending: durable goods tied to vehicle ownership versus discretionary spending on the home. This stock comparison is relevant for traders and investors seeking to understand how relative performance, earnings quality, and market positioning diverge between a value-oriented auto dealer and a premium-multiple specialty retailer. Although both are classified as consumer-cyclical businesses, their recent behavior has moved in opposite directions, making them a useful case study in momentum, valuation, and sector exposure.
LAD Overview and Recent Performance
Lithia Motors (Lithia & Driveway) is the largest automotive retailer in the United States, operating nearly 500 stores across the U.S., Canada, and the U.K. and offering roughly 60 vehicle brands, financing, and aftersales services. In its most recent quarterly report, the company generated just under $10 billion in revenue and grew adjusted diluted EPS by 9% year over year, supported by a 13% increase in used-vehicle GPU (gross profit per unit) and an eighth consecutive quarter of aftersales gross-profit growth.
Despite these operating results, recent market activity has been mixed. The stock has traded well below its 52-week high in recent weeks, with a notable single-session decline following its latest earnings release as investors weighed softer new-vehicle volumes and higher interest costs tied to its growing in-house finance arm, Driveway Finance Corporation. Sentiment has been further shaped by broader consolidation in auto retail, including a rally in LAD shares as peers announced large merger transactions. Acquisitions of luxury dealerships and a 7% dividend increase highlight management's focus on scale and capital returns, even as same-store revenue growth remains pressured.
WSM Overview and Recent Performance
Williams-Sonoma is the world's largest digital-first, design-led home retailer, operating brands such as Pottery Barn, West Elm, Williams Sonoma, and Rejuvenation through e-commerce, catalogs, retail stores, and B2B (business-to-business) channels. In its most recent quarter, the company grew revenue 6.7% year over year to roughly $1.96 billion, expanded operating margin to 22.9% from 17.9% a year earlier, and raised its full-year outlook.
Recent market activity has favored the stock, which has climbed toward the upper end of its 52-week range and delivered strong year-to-date gains. Sentiment has been supported by broad-based comparable-sales growth across all major brands, double-digit expansion in the B2B segment, and a wave of analyst price-target increases citing market-share gains and AI-driven personalization tools. Tariff and input-cost pressures remain a watch item, but management has pointed to supply-chain efficiencies and moderating logistics costs as offsets. The company's disciplined capital return program, including buybacks and dividend growth, has reinforced investor confidence.
Trending AI Robots
Tickeron maintains a marketplace of hundreds of AI trading bots that collectively monitor and trade thousands of tickers, each with its own trading style, strategy, timeframe, performance history, and set of symbols. Because market conditions are always shifting, only a subset of these bots is well-suited to the current environment at any given moment. That is the purpose of the curated Trending AI Robots section: it surfaces the strategies that are currently demonstrating the most relevant alignment with prevailing trends, volatility, and momentum. For traders and investors evaluating ideas like the LAD versus WSM comparison, these bots offer a data-driven lens on timing, trend, and relative strength. Explore the Trending AI Robots page to see which automated strategies are leading today.
Head-to-Head Comparison
The two companies occupy different positions on the growth-versus-value spectrum. LAD is an acquisition-driven, capital-intensive business with a low earnings multiple, meaningful leverage, and earnings increasingly tied to finance and aftersales economics. WSM is an asset-light, brand-driven retailer with a premium valuation, a fortress-style balance sheet, and margins supported by full-price selling and market-share gains.
In terms of recent momentum, the contrast is stark: WSM's upward price trajectory and rising analyst targets reflect consistent execution and demand resilience, while LAD's pullback reflects a more uncertain near-term setup around new-vehicle volumes and rising interest expenses. Risk factors also differ—LAD is exposed to auto-financing credit quality and cyclical vehicle demand, whereas WSM faces housing-market sensitivity, tariff exposure, and an elevated multiple that leaves less room for error. Both return capital to shareholders, but WSM's lower leverage and stronger relative performance have translated into more favorable market positioning in recent weeks.
Tickeron AI Verdict
Based on observable factors such as trend consistency, relative strength, earnings momentum, and near-term catalysts, Tickeron's AI currently favors WSM over LAD. Williams-Sonoma's combination of rising operating margins, broad-based comparable-sales growth, raised guidance, and a steady climb in analyst price targets points to more favorable technical and fundamental alignment at present. Lithia Motors, by contrast, offers an inexpensive valuation and aggressive capital returns, but its recent share-price decline and softer vehicle-sales trends create a less consistent setup in the near term. This is a probabilistic assessment of current conditions rather than a definitive prediction, and relative positioning could shift as new data emerges.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is LAD is a Buy and WSM is a Hold.
LAD in upward trend: price may jump up because it broke its lower Bollinger Band on October 21, 2026
LAD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 27 of 29 cases where LAD's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where LAD's RSI Indicator exited the oversold zone, 22 of 28 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 79%.
The Momentum Indicator moved above the 0 level on November 04, 2026. You may want to consider a long position or call options on LAD as a result. In 67 of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 77%.
The Moving Average Convergence Divergence (MACD) for LAD just turned positive on October 15, 2026. Looking at past instances where LAD's MACD turned positive, the stock continued to rise in 31 of 46 cases over the following month. The odds of a continued upward trend are 67%.
LAD moved above its 50-day moving average on November 11, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +5.94% 3-day Advance, the price is estimated to grow further. Considering data from situations where LAD advanced for three days, in 217 of 310 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 43 of 63 cases where LAD's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 68%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LAD declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 71%.
The Aroon Indicator for LAD entered a downward trend on October 22, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 22 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 54 (best 1 - 100 worst), indicating steady price growth. LAD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 57 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.060) is normal, around the industry mean (1.554). P/E Ratio (10.204) is within average values for comparable stocks, (12.811). Projected Growth (PEG Ratio) (0.561) is also within normal values, averaging (0.695). Dividend Yield (0.010) settles around the average of (0.011) among similar stocks. P/S Ratio (0.213) is also within normal values, averaging (0.919).
The Tickeron SMR rating for this company is 68 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LAD’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
WSM in downward trend: price may drop because broke its higher Bollinger Band on November 04, 2026
WSM broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 45 similar instances where the stock broke above the upper band. In 35 of the 45 cases the stock fell afterwards. This puts the odds of success at 78%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for WSM moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 similar instances where the indicator moved out of overbought territory. In 32 of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at 70%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 39 of 52 cases where WSM's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 75%.
The Moving Average Convergence Divergence Histogram (MACD) for WSM turned negative on November 06, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In 30 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 61%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WSM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 66%.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 06, 2026. You may want to consider a long position or call options on WSM as a result. In 67 of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 79%.
The 10-day moving average for WSM crossed bullishly above the 50-day moving average on October 08, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 14 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 88%.
Following a +5.02% 3-day Advance, the price is estimated to grow further. Considering data from situations where WSM advanced for three days, in 234 of 313 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
The Aroon Indicator entered an Uptrend today. In 158 of 245 cases where WSM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 64%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 13 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock better than average.
The Tickeron SMR rating for this company is 19 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 22 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 39 (best 1 - 100 worst), indicating steady price growth. WSM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 94 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: WSM's P/B Ratio (13.977) is slightly higher than the industry average of (2.289). P/E Ratio (25.741) is within average values for comparable stocks, (17.578). WSM's Projected Growth (PEG Ratio) (2.623) is slightly higher than the industry average of (1.159). Dividend Yield (0.012) settles around the average of (0.102) among similar stocks. WSM's P/S Ratio (3.292) is slightly higher than the industry average of (1.057).
LAD | WSM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 30 | 85 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 57 Fair valued | 94 Overvalued | |
PROFIT vs RISK RATING 1..100 | 100 | 13 | |
SMR RATING 1..100 | 68 | 19 | |
PRICE GROWTH RATING 1..100 | 54 | 39 | |
P/E GROWTH RATING 1..100 | 22 | 22 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
LAD's Valuation (57) in the Specialty Stores industry is somewhat better than the same rating for WSM (94). This means that LAD’s stock grew somewhat faster than WSM’s over the last 12 months.
WSM's Profit vs Risk Rating (13) in the Specialty Stores industry is significantly better than the same rating for LAD (100). This means that WSM’s stock grew significantly faster than LAD’s over the last 12 months.
WSM's SMR Rating (19) in the Specialty Stores industry is somewhat better than the same rating for LAD (68). This means that WSM’s stock grew somewhat faster than LAD’s over the last 12 months.
WSM's Price Growth Rating (39) in the Specialty Stores industry is in the same range as LAD (54). This means that WSM’s stock grew similarly to LAD’s over the last 12 months.
WSM's P/E Growth Rating (22) in the Specialty Stores industry is in the same range as LAD (22). This means that WSM’s stock grew similarly to LAD’s over the last 12 months.
| LAD | WSM | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 79% | 1 day ago 70% |
| Stochastic ODDS (%) | 1 day ago 68% | 1 day ago 75% |
| Momentum ODDS (%) | 1 day ago 77% | 1 day ago 79% |
| MACD ODDS (%) | 1 day ago 67% | 1 day ago 61% |
| TrendWeek ODDS (%) | 1 day ago 68% | 1 day ago 67% |
| TrendMonth ODDS (%) | 1 day ago 67% | 1 day ago 73% |
| Advances ODDS (%) | 7 days ago 70% | 28 days ago 75% |
| Declines ODDS (%) | 24 days ago 71% | 6 days ago 66% |
| BollingerBands ODDS (%) | 1 day ago 90% | 1 day ago 78% |
| Aroon ODDS (%) | 1 day ago 66% | 1 day ago 64% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
LAD’s FA Score shows that 1 FA rating(s) are green while WSM’s FA Score has 3 green FA rating(s).
- LAD’s FA Score: 1 green, 4 red.
- WSM’s FA Score: 3 green, 2 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
LAD’s TA Score shows that 5 TA indicator(s) are bullish while WSM’s TA Score has 4 bullish TA indicator(s).
- LAD’s TA Score: 5 bullish, 3 bearish.
- WSM’s TA Score: 4 bullish, 5 bearish.
Price Growth
LAD (@Automotive Aftermarket) experienced а +2.60% price change this week, while WSM (@Specialty Stores) price change was +3.09% for the same time period.
The average weekly price growth across all stocks in the @Automotive Aftermarket industry was -3.16%. For the same industry, the average monthly price growth was -0.25%, and the average quarterly price growth was -14.21%.
The average weekly price growth across all stocks in the @Specialty Stores industry was -1.13%. For the same industry, the average monthly price growth was +13.14%, and the average quarterly price growth was +17.79%.
Reported Earning Dates
LAD is expected to report earnings on Feb 17, 2027.
WSM is expected to report earnings on Nov 18, 2026.
Industries' Descriptions
@Automotive Aftermarket (-3.16% weekly)The Automotive Aftermarket consists of the manufacturing, remanufacturing, distribution, retailing, and installation of vehicle parts and accessories, after the sale of the automobile by the original equipment manufacturer (OEM) to the consumer. The aftermarket parts many not be manufactured by the OEM. According to a Technavio study, the US automotive parts aftermarket size is estimated to grow by USD 24.33 billion during 2018-2022 (CAGR 3%). Like many other industries, the automotive aftermarket is also being intensely penetrated by the digital boom. The online auto parts sales market is predicted to exceed $13B by 2020 (according to a study by Mirakl).
@Specialty Stores (-1.13% weekly)The specialty stores sector includes companies dedicated to the sale of retail products focused on a single product category, such as clothing, carpet, books, or office supplies. A specialty store could face intense competition from big-box departmental chains, and therefore offering an adequate collection of the product type it specializes in is key in maintaining/growing its market.
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LAD and
Correlation & Price change
A.I.dvisor indicates that over the last year, LAD has been closely correlated with AN. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if LAD jumps, then AN could also see price increases.
WSM and
Correlation & Price change
A.I.dvisor indicates that over the last year, WSM has been loosely correlated with FND. These tickers have moved in lockstep 65% of the time. This A.I.-generated data suggests there is some statistical probability that if WSM jumps, then FND could also see price increases.
| Ticker / NAME | Correlation To WSM | 1D Price Change % | ||
|---|---|---|---|---|
| WSM | 100% | +0.21% | ||
| FND - WSM | 65% Loosely correlated | -0.74% | ||
| CPRT - WSM | 62% Loosely correlated | -0.40% | ||
| RH - WSM | 62% Loosely correlated | +0.80% | ||
| ARHS - WSM | 59% Loosely correlated | -2.22% | ||
| LOW - WSM | 58% Loosely correlated | -0.12% | ||
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