Penske Automotive Group, Inc. : At full blast
Entry price | Target | Stop-loss | Potential |
---|
US$26.84 |
US$0 |
US$25.3 |
-100% |
---|
Penske Automotive Group is an American automotive retailer which operates 166 franchises in US and 169 abroad. With more than 40 partnerships with car manufacturer and repair centers, they offer new and second-hands vehicles, financial products, credits, insurance, spare parts and after-sales services. Earnings for first quarter published on April 25th showed a revenues'increase of 18% in spite of the uncertainty economics climate.
From fundamental viewpoint the company is trading at weak value. Ratio enterprise value / revenue is 0.24x the estimates for 2012. Earnings per share are expected at 2.01 dollars for this fiscal year.
Technically the stock is following a strong bullish trend since the beginning of the year a 40% increase. 20-days moving average come in support of the trend. The decline observed during the last few sessions is stopped by 20-days moving average and a new impulse could help the stock to test a second time its USD 27.13 resistance. The ongoing level formed an interesting entry point with a target fixed on Thomson-Reuters' consensus at USD 31.6.
Investors could take a buying position on Penske Automotive Group security with an objective at USD 31.6, representing a potential gain of 17%. A stop-loss will be engaged at USD 25.3, below the short-term support.
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