New Lifetime High For Credit Acceptance (CACC)
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.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Credit Acceptance as such a stock due to the following factors:
- CACC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.2 million.
- CACC has traded 375 shares today.
- CACC is trading at a new lifetime high.
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More details on CACC:
Credit Acceptance Corporation provides automobile dealers financing programs, and related products and services that enable them to sell vehicles to consumers. CACC has a PE ratio of 15.8. Currently there are no analysts that rate Credit Acceptance a buy, 2 analysts rate it a sell, and 3 rate it a hold.
The average volume for Credit Acceptance has been 62,000 shares per day over the past 30 days. Credit Acceptance has a market cap of $3.9 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.91 and a short float of 7.7% with 7.62 days to cover. Shares are up 43.5% year-to-date as of the close of trading on Monday.
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Analysis:
rates Credit Acceptance as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, solid stock price performance and growth in earnings per share. 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 revenue growth came in higher than the industry average of 6.7%. Since the same quarter one year prior, revenues slightly increased by 5.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 32.83% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CACC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- CREDIT ACCEPTANCE CORP has improved earnings per share by 23.2% 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, CREDIT ACCEPTANCE CORP increased its bottom line by earning $12.01 versus $10.59 in the prior year. This year, the market expects an improvement in earnings ($13.68 versus $12.01).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Consumer Finance industry and the overall market, CREDIT ACCEPTANCE CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for CREDIT ACCEPTANCE CORP is currently very high, coming in at 71.20%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 39.43% significantly outperformed against the industry average.
- You can view the full Credit Acceptance Ratings Report.
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