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Trade-Ideas LLC identified
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified World Acceptance as such a stock due to the following factors:
- WRLD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.8 million.
- WRLD has traded 69,988 shares today.
- WRLD is up 3.2% today.
- WRLD was down 14.9% yesterday.
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More details on WRLD:
World Acceptance Corporation is engaged in small-loan consumer finance business in the United States and Mexico. The company primarily offers short-term and medium-term consumer installment loans, as well as related credit insurance, and ancillary products and services to individuals. WRLD has a PE ratio of 9.1. Currently there is 1 analyst that rates World Acceptance a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for World Acceptance has been 122,600 shares per day over the past 30 days. World Acceptance has a market cap of $842.7 million and is part of the financial sector and financial services industry. The stock has a beta of 0.28 and a short float of 81.5% with 14.75 days to cover. Shares are down 5.3% year-to-date as of the close of trading on Thursday.
rates World Acceptance as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- 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, WORLD ACCEPTANCE CORP/DE's return on equity significantly exceeds that of both the industry average and the S&P 500.
- WORLD ACCEPTANCE CORP/DE' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WORLD ACCEPTANCE CORP/DE increased its bottom line by earning $9.40 versus $7.94 in the prior year. This year, the market expects an improvement in earnings ($10.24 versus $9.40).
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. 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.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.8%. Since the same quarter one year prior, revenues slightly dropped by 4.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Despite the current debt-to-equity ratio of 1.89, it is still below the industry average, suggesting that this level of debt is acceptable within the Consumer Finance industry.
- You can view the full World Acceptance Ratings Report.