Credit Acceptance Corporation : The calm spell can be taken advantage of to put on new positions
Entry price | Target | Stop-loss | Potential |
---|
$531.01 |
$698 |
$470 |
+31.45% |
---|
From a horizontal accumulation phase, the timing seems good to buy shares in Credit Acceptance Corporation and to get ahead of a break-out on the upside of the congestion area.
Strengths● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
● The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.
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