What happened Shares of Group 1 Automotive (NYSE: GPI), owner and operator of 186 automotive dealerships, jumped over 20% higher Tuesday after the company released preliminary third-quarter results that included a number of positive developments for investors. So what The COVID-19 pandemic hit the automotive industry with plunging showroom traffic and production disruptions that have had negative ripple effects since March. However, demand for new vehicles has broadly rebounded and Group 1 Automotive's preliminary third-quarter results support the idea the industry is gaining momentum. Management expects third-quarter adjusted earnings per share to check in between $6.40 to $6.80, well above analysts' estimates of $3.73 per share. The upbeat third-quarter earnings weren't the only positive development as management noted that higher gross margin helped offset lower sales volumes. Management also announced a $200 million share repurchase authorization and expects to reinstate its quarterly cash dividend in mid-November. Image source: Getty Images. Now what While the automotive industry has seen some recovery since COVID-19 swept the nation, and Group 1 Automotive's third-quarter results were certainly welcome news to investors, we aren't out of the woods just yet. Investors can be cautiously optimistic thanks to third-quarter results and a return in demand, but there are still vehicle supply issues due to temporarily halted production and there's still a lot of uncertainty surrounding economic stability and a potential stimulus, as well as a second wave of COVID-19. 10 stocks we like better than Group 1 AutomotiveWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Group 1 Automotive wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of September 24, 2020 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source