AutoNation (AN, $79.45) beats Q4 earnings expectations
AutoNation posted fourth quarter earnings that exceeded analysts’ expectations.
The automotive retailer’s adjusted earnings came in at $2.43 a share, well above analysts’ forecast of $2.01 a share.
Revenue of $5.79 billion, also beat analysts’ expectations of $5.56 billion.
Gross profit per vehicle at AutoNation increased +50% to $2775 from $919, the company said.
During the fourth quarter, AutoNation sold 3.1 million shares of its holding in Vroom for proceeds of $105 million; it realized a cash gain of $78 million. The company sold its remaining stake in Vroom for proceeds of $109 million and realized a cash gain of $87 million in 2021. So, the company realized a total cash gain of $165 million from this investment.
AutoNation plans to open five stores in the U.S. in Austin, Denver (2 stores), Phoenix, and San Antonio this year. It said it will add 10 new stores by the end of 2022.
In the long-term, AutoNation aims to retail more than 1 million combined new and used vehicle units per year.
AN's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for AN turned positive on April 19, 2022. Looking at past instances where AN's MACD turned positive, the stock continued to rise in 40 of 52 cases over the following month. The odds of a continued upward trend are 77%.
Current price $122.25 crossed the support line at $92.15 and is trading between $154.69 resistance and $92.15 support lines. Throughout the month of 04/13/22 - 05/16/22, the price experienced a +22% Uptrend. During the week of 05/09/22 - 05/16/22, the stock enjoyed a +0.56% Uptrend growth.
AN moved above its 50-day Moving Average on April 25, 2022 date and that indicates a change from a downward trend to an upward trend.
The 10-day Moving Average for AN crossed bullishly above the 50-day moving average on April 29, 2022. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 57%.
Following a +4.48% 3-day Advance, the price is estimated to grow further. Considering data from situations where AN advanced for three days, in 212 of 323 cases, the price rose further within the following month. The odds of a continued upward trend are 66%.
The Aroon Indicator entered an Uptrend today. In 164 of 248 cases where AN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 66%.
The 10-day RSI Indicator for AN moved out of overbought territory on May 05, 2022. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 similar instances where the indicator moved out of overbought territory. In 29 of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at 73%.
The Stochastic Indicator may be shifting from an upward trend to a downward trend. In 40 of 63 cases where AN's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 63%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AN declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 64%.
AN broke above its upper Bollinger Band on April 25, 2022. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 58%. During the last month, the daily ratio of advancing to declining volumes was 1.79 to 1.
The Tickeron SMR rating for this company is 7 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 7 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating steady price growth. AN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 75 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 86 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.039) is normal, around the industry mean (8.174). P/E Ratio (5.754) is within average values for comparable stocks, (27.377). Projected Growth (PEG Ratio) (2.204) is also within normal values, averaging (1.442). AN has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.027). P/S Ratio (0.319) is also within normal values, averaging (31.233).
The specialty stores sector includes companies dedicated to the sale of retail products focused on a single product category, such as clothing, carpet, books, or office supplies. A specialty store could face intense competition from big-box departmental chains, and therefore offering an adequate collection of the product type it specializes in is key in maintaining/growing its market.
The average market capitalization across the Specialty Stores Industry is 6.6B. The market cap for tickers in the group ranges from 48 to 305.9B. HD holds the highest valuation in this group at 305.9B. The lowest valued company is CALI at 48.
The average weekly price growth across all stocks in the Specialty Stores Industry was 1.03%. For the same Industry, the average monthly price growth was -9.18%, and the average quarterly price growth was -19.74%. MSSV experienced the highest price growth at 183.15%, while IHCPF experienced the biggest fall at -29.32%.
- 4/27/22 5:34 AM: AutoNation (AN, $116.15) was a top weekly gainer, with a +6.91% jump
- 3/3/22 7:26 AM: AutoNation (AN, $119.83) was a top weekly gainer, with a +15% jump
The average weekly volume growth across all stocks in the Specialty Stores Industry was -58.17%. For the same stocks of the Industry, the average monthly volume growth was -31.16% and the average quarterly volume growth was -44.37%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the Aroon Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 39%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.41.
20 stocks in the group of tickers exhibit a similar negative trend based on the 15 indicator with an average likelihood of 77%.
The most notable companies in this group are Costco Wholesale Corp (NASDAQ:COST), Target Corp (NYSE:TGT), AutoZone (NYSE:AZO), Tractor Supply Company (NASDAQ:TSCO), Ulta Beauty (NASDAQ:ULTA), Advance Auto Parts (NYSE:AAP), RH (NYSE:RH), Just Eat Takeaway.com NV (OTC:JTKWY), Signet Jewelers Limited (NYSE:SIG), Bed Bath & Beyond (NASDAQ:BBBY).
The average market capitalization across the group is 10.6B. The market cap for tickers in the group ranges from 68.4M to 220.4B. COST holds the highest valuation in this group at 220.4B. The lowest valued company is OCG at 68.4M.
The average weekly price growth across all stocks in the group was 0.13%. For the same group, the average monthly price growth was -10.94%, and the average quarterly price growth was -27.37%. VRM experienced the highest price growth at 36.11%, while EYE experienced the biggest fall at -23.47%.
- 5/14/22 4:23 AM: Vroom (VRM, $1.6) is a top weekly gainer for penny stocks, rising +18.52%
- 5/11/22 7:46 AM: Target (TGT, $219.11) was a top loser this week, declining -5.78%. Expect a Downtrend reversal
- 5/10/22 5:36 AM: Academy Sports and Outdoors (ASO, $35.97) was a top loser this week, declining -5.89%
The average weekly volume growth across all stocks in the group was -0.29%. For the same stocks of the group, the average monthly volume growth was 70.44% and the average quarterly volume growth was 120.9%
- 5/14/22 4:17 AM: The volume for Vroom stock increased for three consecutive days, resulting in a record-breaking daily growth of 191% of the 65-Day Volume Moving Average
- 5/12/22 5:33 AM: The volume for Vroom stock increased for one day, resulting in a record-breaking daily growth of 283% of the 65-Day Volume Moving Average
- 5/11/22 7:40 AM: The volume for Party City Hold stock increased for one day, resulting in a record-breaking daily growth of 321% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows