Trade-Ideas: Penske Automotive Group (PAG) Is Today's Strong On High Relative Volume Stock

Trade-Ideas LLC identified Penske Automotive Group (PAG) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Penske Automotive Group

(

PAG

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Penske Automotive Group as such a stock due to the following factors:

  • PAG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.4 million.
  • PAG has traded 103,802 shares today.
  • PAG is trading at 2.50 times the normal volume for the stock at this time of day.
  • PAG is trading at a new high 4.09% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in PAG with the Ticky from Trade-Ideas. See the FREE profile for PAG NOW at Trade-Ideas

More details on PAG:

Penske Automotive Group, Inc. operates as a transportation services company. The company operates through three segments: Retail Automotive, Retail Commercial Truck, and Other. The stock currently has a dividend yield of 3.2%. PAG has a PE ratio of 9. Currently there are 6 analysts that rate Penske Automotive Group a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Penske Automotive Group has been 676,700 shares per day over the past 30 days. Penske Automotive Group has a market cap of $2.8 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.29 and a short float of 7.8% with 3.00 days to cover. Shares are down 21.4% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Penske Automotive Group as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, attractive valuation levels and notable return on equity. We feel its 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 7.4%. Since the same quarter one year prior, revenues slightly increased by 7.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • PENSKE AUTOMOTIVE GROUP INC has improved earnings per share by 7.1% 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, PENSKE AUTOMOTIVE GROUP INC increased its bottom line by earning $3.65 versus $3.33 in the prior year. This year, the market expects an improvement in earnings ($3.80 versus $3.65).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Specialty Retail industry average. The net income increased by 5.5% when compared to the same quarter one year prior, going from $75.20 million to $79.30 million.
  • 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 Specialty Retail industry and the overall market on the basis of return on equity, PENSKE AUTOMOTIVE GROUP INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Loading ...