Credit Acceptance Corp
(CACC - Free Report
) continues to trade strong in the volatile market, recently hitting a new all-time high on another good quarter. With estimates on the rise and a bullish growth projection, this Zacks #1 Rank stock has plenty of upward momentum.
Credit Acceptence Corp provides auto and related loans in the United States. The company was founded in 1972 and has a market cap of $2.27 billion.
With consumers finding it difficult to secure credit at a big bank, specialty finance companies have been seeing strong demand. That showed up in early November when Credit Acceptence reported strong Q2 results that came in ahead of expectations.
Revenue for the period was up 20% from last year to $134 million. Earnings also came in strong at $1.88, 7.5% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 9.5% over the last four quarters.
The good quarter was driven by a simple combination of higher lending volume and stable collections rates.
We saw some pretty bullish movement in estimates off the good quarter, with the current year adding 27 cents to $7.05. The next-year estimate is pegged at $8.15, a bullish 16% growth projection.
With a PEG ratio of .78, CACC trades at a discount to the benchmark of 1 for value.
On the chart, shares have been rally for the last few months, recently hitting a new all-time high on the strong quarter. 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.