Car and truck sales remain relatively strong, with the auto dealers group ranked No. 49 on the list of 197 industry groups that Investor's Business Daily maintains. Credit Acceptance is a leader in providing credit to those car buyers, and its stock is outperforming the market. The Relative Strength (RS) Rating for Credit Acceptance stock popped into a higher percentile Wednesday, as it climbed to 73, up from 69 the day before.
With the rating upgrade, Credit Acceptance stock moves near a benchmark for top stocks. Market research shows that the biggest stock winners tend to have an 80 or higher RS Rating in the early stages of their moves. See if Credit Acceptance can continue to rebound and hit that benchmark.
Credit Acceptance Stock Among Top 13%
Among its other key ratings Credit Acceptance stock has an 87 IBD Composite Rating, IBD's comprehensive rating that combines its top five other ratings. The car loan company also has an outstanding 91 EPS Rating and a B Accumulation/Distribution Rating. The B rating shows that mutual funds and other institutions are fairly heavy buyers of Credit Acceptance stock.
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The Toledo, Mich.-based company's fundamentals are strong. Credit Acceptance reported a 26% jump in earnings to $14.94 per share last quarter. The prior three stanzas its EPS rose 218%, 16% and then 55%. Sales have continued to grow but at a mild rate recently. In its most recent quarter, sales rose 1% to $455.7 million. Look for that to improve.
Credit Acceptance stock dropped to a 452.48 low on June 30 amid this year's bear market, and then it turned up. It traded as high as 545 Wednesday afternoon, and was on track for a fourth straight higher close. Then it reversed down Wednesday afternoon as the market turned mixed, though it held above its 50-day line.
Credit Acceptance is not near an ideal buy point right now. See if it goes on to form and break out of a proper chart pattern like a three weeks tight or a cup-with-handle base. Look for the next report on or around July. 29.
Loan Industry Peers
Credit Acceptance stock holds the No. 3 rank among its peers in the Finance-Consumer Loans industry group. Nelnet and Consumer Portfolio are also among the group's highest-rated stocks.
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When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This exclusive Relative Strength Rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
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