Trade-Ideas: AutoNation (AN) Is Today's New Lifetime High Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified AutoNation (AN) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified AutoNation as such a stock due to the following factors:
- AN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $58.3 million.
- AN has traded 1.9 million shares today.
- AN is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AN with the Ticky from Trade-Ideas. See the FREE profile for AN NOW at Trade-IdeasMore details on AN: AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company operates in three segments: Domestic, Import, and Premium Luxury. AN has a PE ratio of 17.3. Currently there is 1 analyst that rates AutoNation a buy, 2 analysts rate it a sell, and 8 rate it a hold.The average volume for AutoNation has been 931,600 shares per day over the past 30 days. AutoNation has a market cap of $5.8 billion and is part of the services sector and specialty retail industry. The stock has a beta of 0.87 and a short float of 8.1% with 3.53 days to cover. Shares are up 22.4% year to date as of the close of trading on Thursday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates AutoNation as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share, revenue growth, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.Highlights from the ratings report include:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- AUTONATION INC has improved earnings per share by 14.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AUTONATION INC increased its bottom line by earning $2.53 versus $1.93 in the prior year. This year, the market expects an improvement in earnings ($2.96 versus $2.53).
- Despite its growing revenue, the company underperformed as compared with the industry average of 22.6%. Since the same quarter one year prior, revenues rose by 13.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has significantly increased by 125.25% to $43.70 million when compared to the same quarter last year. In addition, AUTONATION INC has also vastly surpassed the industry average cash flow growth rate of 28.22%.
- You can view the full AutoNation Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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