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Penske Perched at High With No Resistance Remaining - Thursday, June 2, 2022
Penske Automotive Grp (PAG +$0.68 or +0.59% to $116.91) posted a 2nd consecutive small gain today with below average volume. There is no resistance remaining due to overhead supply. Its 50-day moving average (DMA) line ($104.47) defines important near term support to watch. Subsequent gains for new highs backed by at least +40% above average volume would be a reassuring sign of fresh institutional buying demand which could lead to a meaningful price advance.
PAG was highlighted in yellow in the 5/13/22 mid-day report (read here) with pivot point cited based on its 5/04/22 high after a 6-month saucer-with-handle base. It was shown in greater detail that evening with an annotated graph under the headline, "Breakout With Volume-Driven Gain to New High". It rebounded back above the previously cited pivot point following a recent pullback.
PAG reported earnings +113% on +21% sales revenues for the Mar '22 quarter versus the year ago period. Recent quarterly earnings were well above the +25% minimum guideline (C criteria). Annual earnings (A criteria) history has been strong. It has an Earnings Per Share Rating of 97, well above the 80+ minimum for buy candidates.
There are 27.6 million shares in the public float (S criteria) which can contribute to greater price volatility in the event of institutional buying or selling. The number of top-rated funds owning its shares rose from 420 in Jun '21 to 500 in Mar '22, a reassuring sign concerning the I criteria. Its current Up/Down Volume Ratio of 1.2 is an unbiased indication it has been under accumulation over the past 50 days. The Retail/Wholesale-Automobile group is currently ranked 94th of the 197 Industry Groups, however several other high-ranked stocks in the group have been showing confirming strength and leadership (L criteria).
Breakout With Volume-Driven Gain to New High - Friday, May 13, 2022
Penske Automotive Grp (PAG +$6.92 or +6.35% to $115.94) finished strong today after highlighted in yellow in the mid-day report (read here) with pivot point cited based on its 5/04/22 high after a 6-month saucer-with-handle base. It hit a new all-time high today. The gain and close above the pivot point was backed by +89% above average volume triggering a technical buy signal. However, members were reminded - "New buying efforts may only be considered after a solid follow-through day confirms a new market uptrend (M criteria) under the fact-based investment system. Follow this closely in the daily market commentaries."
PAG reported earnings +113% on +21% sales revenues for the Mar '22 quarter versus the year ago period. Recent quarterly earnings were well above the +25% minimum guideline (C criteria). Annual earnings (A criteria) history has been strong. It has an Earnings Per Share Rating of 97, well above the 80+ minimum for buy candidates.
There are 27.6 million shares in the public float (S criteria) which can contribute to greater price volatility in the event of institutional buying or selling. The number of top-rated funds owning its shares rose from 420 in Jun '21 to 502 in Mar '22, a reassuring sign concerning the I criteria. Its current Up/Down Volume Ratio of 0.9 indicates modest distributional pressure over the past 50 days. The Retail/Wholesale-Automobile group is currently ranked 117th of the 197 Industry Groups, however several other high-ranked stocks in the group have been showing confirming strength and leadership (L criteria).
