On May 24, America's Car-Mart stock shot up 31% in the heaviest volume since early 2020 on an outstanding earnings report the day before. Its stock climbed another 9.7% on May 25 and this week it's held onto most of the 40% two-day gain. On Tuesday, America's Car-Mart stock reached an important technical milestone, as its stock Relative Strength (RS) Rating climbed into the 80-plus percentile with an upgrade to 82, a 19-point leap from 63 the day before. The question now is: Can America's Car-Mart sustain momentum and rise even further?
America's Car-Mart Stock Among Top 16%
For comparison to other stocks, the 82 RS Rating means that America's Car-Mart stock has performed in the top 18% of all stocks, regardless of industry group, in terms of stock price performance. Market research shows that the best stocks often have an RS Rating of over 80 as they begin their biggest runs.
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Among other principal ratings, America's Car-Mart stock has an 84 Composite Rating putting it in the top 16% of stocks on a group of five other key metrics. Its 78 EPS Rating is OK but look for that to improve to put it in the top tier of stocks.
America's Car-Mart operates 148 used car dealerships in 11 states under its namesake and Colonial Auto Finance.
Although the Rogers, Ark.-based company's earnings dipped 35% last quarter vs. the same quarter a year ago, to $4.01, that beat analyst estimates by 91 cents per share. Revenue climbed 26% year over year to $351.8 million. The last four quarters its sales growth has ranged from 26% to 49%.
Even though its stock popped last week and it's held the gain, stock watchlist candidate America's Car-Mart stock is not currently offering a proper buying opportunity. See if the stock goes on to build a promising consolidation that could kick off a new price rise.
America's Car-Mart stock holds the No. 10 rank among its peers in the Retail/Wholesale-Auto Parts industry group. Penske Automotive is No. 1 and AutoNation is No. 2 in the group.
When you're researching the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's unique rating tracks market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
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