Company: AutoNation Inc

Despite problems in the U.S. economy, including persistently high unemployment, the automotive industry is a bright spot that gives AutoNation CEO Mike Jackson confidence.

AutoNation posted a 5 percent jump in first-quarter profit Wednesday as the nation's largest dealership chain sold more new and used vehicles.

It's the basic question when investing in a stock: is it on the way up or will it go down? To answer this question,  Wall Street has developed numerous ways of attempting to predict what will happen, estimating various attributes tied to stock performance in order to determine what the future holds for a company's valuation.

AutoNation CEO Mike Jackson said stronger stronger auto sales at his company is evidence of a wider U.S. economic recovery, but he is sticking to his forecast of fewer vehicles sold this year than the industry expects.

AutoNation CEO Mike Jackson predicted the auto industry will sell 14 million units this year, higher than what others in the industry expect.

It's the basic question when investing in a stock: is it on the way up or will it go down? To answer this question,  Wall Street has developed numerous ways of attempting to predict what will happen, estimating various attributes tied to stock performance in order to determine what the future holds for a company's valuation.