Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Lithia Motors as such a stock due to the following factors:
- LAD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.9 million.
- LAD has traded 784,972 shares today.
- LAD traded in a range 314.4% of the normal price range with a price range of $9.52.
- LAD traded above its daily resistance level (quality: 49 days, meaning that the stock is crossing a resistance level set by the last 49 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on LAD:
Lithia Motors, Inc. operates as an automotive franchisee and retailer of new and used vehicles in the United States. The stock currently has a dividend yield of 0.9%. LAD has a PE ratio of 13. Currently there are 5 analysts that rate Lithia Motors a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Lithia Motors has been 423,900 shares per day over the past 30 days. Lithia has a market cap of $2.3 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.94 and a short float of 9.5% with 4.68 days to cover. Shares are down 18.3% year-to-date as of the close of trading on Tuesday.
rates Lithia Motors as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, reasonable 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:
- LAD's very impressive revenue growth greatly exceeded the industry average of 8.0%. Since the same quarter one year prior, revenues leaped by 60.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- LITHIA MOTORS INC has improved earnings per share by 25.2% 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, LITHIA MOTORS INC increased its bottom line by earning $5.15 versus $4.02 in the prior year. This year, the market expects an improvement in earnings ($6.93 versus $5.15).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Specialty Retail industry average. The net income increased by 25.6% when compared to the same quarter one year prior, rising from $34.54 million to $43.39 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. In comparison to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, LITHIA MOTORS INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
- You can view the full Lithia Motors Ratings Report.