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Americas Car Mart

by Michael Vodicka

December 05, 2011 | Comments : 0 Recommended this article: (0)

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Americas Car Mart ( CRMT - Snapshot Report ) just surged into a new all-time high after reporting another strong quarter that included a 12% earnings surprise. With estimates on the rise and a bullish growth projection, this Zacks #1 Rank stock has plenty of momentum.

Company Description

Americas Car Mart, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company specializes in used cars and is a small cap valued at $324 million.

CRMT posted big gains in October with the market. But shares got an extra boost on November 17 after the company reported strong Q2 results that included a 12% earnings surprise.

Second-Quarter Results

Revenue for the period was up 21% from last year to $111 million. Earnings also came in strong at 77 cents, 12% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 10% over the last three quarters.

High volume drove the good quarter, with units sold up 18% from last year to 9,919.

Estimates

We saw some pretty solid movement in estimates off the good quarter, with the current year adding 6% to $3.16. The next-year estimate is pegged at $3.61, a 14% growth projection.

Valuation

CRMT's PEG ratio of .86 is below the benchmark of 1 for value.

3-Month Chart

On the chart, shares began rallying in October with the market before recently surging into a new all-time high. Look for support from the trend line on any weakness. Take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.

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