Autohome (ATHM - Free Report) is a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day today. I try to avoid almost all Chinese stocks and not just because of the trade war or tariff tantrums that have hit the market of late. I simply do not trust the accounting and audits of these stocks as I have seen too many frauds come out of China. That said, I do not know if ATHM is a fraud or not, but I do know that estimates are falling and that is not what we want to see.
Description
Autohome Inc. is the leading online destination for automobile consumers in China. Its mission is to enhance the car-buying and ownership experience for auto consumers in China. Autohome provides professionally produced and user-generated content, a comprehensive automobile library, and extensive automobile listing information to automobile consumers, covering the entire car purchase and ownership cycle.
Recent Earnings
ATHM recently posted a 3 cent beat of the Zacks Consensus Estimate which translated into a 3%positive earnings surprise. It is not that often we see a stock that recently beat become the Bear of the Day.
Estimates
The main reason this stock has fallen to a Zacks Rank #5 (Strong Sell) is that the Zacks Consensus Estimate for 2018 and 2019 keeps moving lower.
30 days ago, the Zacks Consensus Estimate for 2018 was at $3.61, but it has since moved lower to $3.40.
Over the same time period, the Zacks Consensus Estimate for 2019 moved from $4.59 to $4.26.
Stock Tumbles
A quick look at the chart and you can see the stock is down 50% from recent highs. The stock was near $120 at the start of the summer, but negative headlines and lower earnings estimates have pushed this stock down to the $80 range.
Chart
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>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Autohome (ATHM - Free Report) is a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day today. I try to avoid almost all Chinese stocks and not just because of the trade war or tariff tantrums that have hit the market of late. I simply do not trust the accounting and audits of these stocks as I have seen too many frauds come out of China. That said, I do not know if ATHM is a fraud or not, but I do know that estimates are falling and that is not what we want to see.
Description
Autohome Inc. is the leading online destination for automobile consumers in China. Its mission is to enhance the car-buying and ownership experience for auto consumers in China. Autohome provides professionally produced and user-generated content, a comprehensive automobile library, and extensive automobile listing information to automobile consumers, covering the entire car purchase and ownership cycle.
Recent Earnings
ATHM recently posted a 3 cent beat of the Zacks Consensus Estimate which translated into a 3%positive earnings surprise. It is not that often we see a stock that recently beat become the Bear of the Day.
Estimates
The main reason this stock has fallen to a Zacks Rank #5 (Strong Sell) is that the Zacks Consensus Estimate for 2018 and 2019 keeps moving lower.
30 days ago, the Zacks Consensus Estimate for 2018 was at $3.61, but it has since moved lower to $3.40.
Over the same time period, the Zacks Consensus Estimate for 2019 moved from $4.59 to $4.26.
Stock Tumbles
A quick look at the chart and you can see the stock is down 50% from recent highs. The stock was near $120 at the start of the summer, but negative headlines and lower earnings estimates have pushed this stock down to the $80 range.
Chart
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>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on ATHM - FREE