No one likes getting a ticket. But no one likes getting stuck in traffic either. Smart mobility leader Verra Mobility uses technology to pave the way for both safe and speedy transportation. And it's driving profits along the way.
In Q2, Verra beat estimates, generating 190% earnings growth. Over the last three quarters, the company has posted average EPS gains of 116%.
Second-quarter sales hit $187.5 million, marking 46% year-over-year growth. Verra Mobility's revved-up revenue increased in the prior four quarters as well, delivering outstanding growth between 61% and 90%.
This bullish performance, along with growing technical strength, has earned VRRM stock a spot on the IBD Breakout Stocks Index.
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Based in Mesa, Ariz., Verra Mobility's global footprint reaches across the United States, Europe, Asia and Australia.
The company provides smart mobility technology solutions to make transportation safer, smarter and more connected.
Positioned at the center of the mobility ecosystem, Verra brings together vehicles, hardware, software, data and people to enable safe, efficient solutions for customers globally. Operations span transportation safety systems and parking management solutions.
Verra continues to expand its European presence, winning contracts in the United Kingdom and European Union in recent months.
The company's commercial & fleet solutions division solves complex payment, utilization and compliance challenges for fleet owners and rental car companies. Meanwhile, Verra's commercial services business has just launched new solutions and partnerships to accelerate fleet mobility.
One newly-unveiled innovation is TollLink, a nationwide toll management solution. TollLink leverages a single device, connecting fleets that operate across the U.S., bringing scalable regional toll savings.
Verra Mobility came public through a special purpose acquisition company (SPAC) — also called a "blank check company" — in October 2018.
Pointing to institutional demand, 21 funds with an "A+" rating from IBD have reported a position in VRRM stock. It sports a 1.5 up/down volume ratio and has flashed seven quarters of rising fund ownership.
With a 91 Composite Rating, Verra Mobility earns top billing among its peers in the Specialty Enterprise Software group, which ranks No. 130 out of the 197 groups that IBD tracks.
Verra Mobility Navigates Buy Zone And Resistance
Like most stocks hitting new highs in February 2020, Verra Mobility crashed into March as a result of the Covid-19 pandemic.
VRRM stock has navigated a new climb since recovering, but resistance remains. In August 2021 and February of this year, Verra got turned back as it tried to push higher. Just ahead of Q2 earnings, the stock cleared a 16.83 buy point in a cup with handle but quickly skidded lower.
It currently trades below that entry and is testing support at its 50-day moving average. And, after slipping off its highs, the relative strength line is trending upward once again.
Look for Verra Mobility to hold support and break through resistance into a buy zone in heavy volume.
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Follow Matthew Galgani on Twitter at @IBD_MGalgani.
