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| Company Name | Symbol | %Change |
|---|---|---|
| SONIC FOUNDR | SOFO | 4.40% |
| SUPPORT.COM | SPRT | 3.75% |
| UNISYS | UIS | 3.31% |
| SHORETEL INC | SHOR | 3.22% |
| GREEN MTN CO | GMCR | 3.13% |
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Company Description
DealerTrack Holdings, Inc., through its subsidiaries, provides software solutions to the automotive retail industry in the United States and Canada. The company was founded in 2001 and has a market cap of $1.12 billion.
DealerTrack saw big gains in October with the bullish market. But shares got an extra boost on Nov 7 after the company reported strong Q3 results that came in well ahead of expectations.
Third-Quarter Results
Revenue for the period was up 52% from last year to $96 million. Earnings also came in strong at 28 cents, 56% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 99% over the last three quarters.
Financial Profile
The company will continue to benefit from its strong financial profile, with cash and short-term investments of $65 million against no long-term debt.
Estimates
We saw some bullish movement in estimates off the good quarter, with the current year adding 11 cents to 80 cents while the next-year estimate gained 14 cents to 91 cents, a healthy 14% growth projection.
Valuation
With a PEG ratio of 2.36, TRAK trades at a premium to the benchmark of 1 for value.
6-Month High
On the chart, shares have been rallying since early October, recently hitting a new multi-year. 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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