Phases of COVID-19 crisis:
Early- to mid-March 2020:
Fear of the coronavirus outbreak spreading rapidly translates into
reality, with the number of cases accelerating globallyLate-March 2020 onward:
Social distancing measures + lockdownsApril 2020:
Fed stimulus suppresses near-term survival anxietyMay-June 2020:
Recovery of demand, with gradual lifting of lockdowns - no panic anymore despite a steady increase in the number of casesJuly-September 2020:
Poor Q2 results, but continued
improvement in demand and
a decline in the number of new cases and progress with vaccine development buoy expectations
In view of the strong rally in Sonic Automotive stock since late March, we believe that the stock has little room for growth in the near future