Bull’s Eye Report: DealerTrack Technologies (TRAK)

by Dave Moenning | September 9, 2013 1:01 pm

Bull’s Eye Report: DealerTrack Technologies (TRAK)

At StateoftheMarkets.com[1], we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
DealerTrack Technologies TRAK Internet Software & Services 8.9 +38.02% $38.69

Why We Like The Stock:

DealerTrack Technologies (TRAK[2]) is our most compelling buy today due to the fact that it is a top-rated stock (in terms of earnings strength and company/industry performance) in a strong sub-industry. Internet stocks have been a leader this year, and have been on our radar for quite some time. Stocks like Automatic Data Processing (ADP[3]), Pandora Media (P[4]), Yahoo! (YHOO[5]), and TRAK make it easy to see why, as stocks in this space have enjoyed long-term up-trends with attractive trending in the short-term. TRAK recently hit highs just below $42 in early August before consolidating through the second half of the month. Currently, the stock has formed a solid base around $39.50, and has paused. All signs point to TRAK maneuvering higher in the short-term, and we would be willing to take a shot at current prices with a tight stop at Friday’s intraday low ($38.69).

We Would Be Buyers:

At the current price (~$39.95).

Company Profile:

DealerTrack Technologies, Inc., formerly DealerTrack Holdings, Inc., is a holding company. Its Web-based software solutions and services are provided for all segments of the automotive retail industry, including dealers, lenders, other equipment manufacturers (OEMs), third party retailers, agents and aftermarket providers. It operates an online credit application network in the United States and Canada. Its Dealer Management System (DMS) provides dealers with tools and data access. Its Inventory solution offerings provide vehicle inventory management and merchandising solutions. Its Sales and Finance solutions allow dealers to streamline the entire sales process as they structure deals from a single integrated platform.

Stock Rating: 8.9

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

DealerTrack Technologies – Last Three Months

trak 1 Bulls Eye Report: DealerTrack Technologies (TRAK)[6]

DealerTrack Technologies – Last 12 Months

trak 2 Bulls Eye Report: DealerTrack Technologies (TRAK)[7]

DealerTrack Technologies – Last Five Years

trak 3 Bulls Eye Report: DealerTrack Technologies (TRAK)[8]

 

Looking to trade the Bull’s Eye stock picks? Click here to download our free Special Report, “How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them”[9]

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

Endnotes:
  1. StateoftheMarkets.com: http://www.StateoftheMarkets.com
  2. TRAK: http://studio-5.financialcontent.com/investplace/quote?Symbol=TRAK
  3. ADP: http://studio-5.financialcontent.com/investplace/quote?Symbol=ADP
  4. P: http://studio-5.financialcontent.com/investplace/quote?Symbol=P
  5. YHOO: http://studio-5.financialcontent.com/investplace/quote?Symbol=YHOO
  6. [Image]: http://investorplace.com/wp-content/uploads/2013/09/trak-1.png
  7. [Image]: http://investorplace.com/wp-content/uploads/2013/09/trak-2.png
  8. [Image]: http://investorplace.com/wp-content/uploads/2013/09/trak-3.png
  9. Looking to trade the Bull’s Eye stock picks? Click here to download our free Special Report, “How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them”: http://stateofthemarkets.com/wp-content/uploads/2013/08/Top5SpecialReport.pdf

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