Markets

4 Reasons to Add America's Car-Mart to Your Portfolio Now

America's Car-Mart, Inc.CRMT stock looks promising at the moment. Year to date, the company has seen its shares skyrocket nearly 60%.

If you haven't taken advantage of the share price appreciation yet, the time is right for you to add the stock to your portfolio as it looks promising and is poised to carry the momentum forward.

Let's delve deeper into factors that make this automotive retailer an attractive investment option.

What Makes America's Car-Mart an Attractive Pick

Solid Rank & VGM Score : America's Car-Mart currently has a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential for investors. Thus, the company is a compelling investment proposition at the moment.

An Outperformer : America's Car-Mart has outperformed the industry it belongs to in the past six months. The company's shares have gained 14.1% against 24.5% decline recorded by the industry.

Estimates Moving North : The Zacks Consensus Estimate for current-year earnings has improved in the past month. Over this period, earnings estimates have inched up 0.7% to $5.69 per share.

Favorable Industry Outlook

At present, the Auto Retail & Whole Sales industry is enjoying some discernible advantages in forms of growing consumer disposable income, easy availability of credit and of course a better employment scenario. It is anticipated that the industry revenues will increase as growing number of consumers are entering the market.

A few other top-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Fox Factory Holding Corp. FOXF and CarGurus, Inc. CARG . While Allison Transmission and Fox Factory currently sport a Zacks Rank #1, CarGurus carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have increased 2.3%.

Fox Factory has an expected long-term growth rate of 17.9%. Over the past six months, shares of the company have risen 15.6%.

CarGurus has an expected long-term growth rate of 5%. Over the past year, shares of the company have grown 3.8%.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

America's Car-Mart, Inc. (CRMT): Free Stock Analysis Report

Fox Factory Holding Corp. (FOXF): Free Stock Analysis Report

Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report

CarGurus, Inc. (CARG): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CRMT ALSN CARG FOXF

Other Topics

Stocks