Substantial bottom-line beats thrill any investor, and for obvious reasons. One company that wowed investors in its latest report is TravelCenters Of America .
Another thrilling aspect of the company is that it carries a Zacks Rank #1 (Strong Buy), meaning that analysts have upped their earnings outlook significantly over the last several months.
Image Source: Zacks Investment Research
TravelCenters Of America is a full-service national travel center chain in the U.S.
In addition, TA has nationwide locations serving hundreds of thousands of professional drivers and other highway travelers each month, including virtually all major trucking fleets.
Let’s take a deeper dive into the company.
Share Performance & Quarterly Results
TravelCenters of America shares have been scorching hot over the last three months, gaining a jaw-dropping 65% in value and crushing its Zacks Sector.
In the chart below, the green arrow represents the company’s previous earnings release.
Image Source: Zacks Investment Research
The immense relative strength that TA shares have displayed over the recent term tells us one thing for sure, and it’s that buyers have been busy.
As we can see in the chart above, a substantial earnings beat undoubtedly fueled the massive move. In its latest quarter, TA reported earnings of $4.34 per share, crushing the Zacks Consensus EPS Estimate by a triple-digit 290%.
In fact, the company carries a four-quarter trailing average EPS surprise of a spectacular 1700%.
Top-line results have also been strong, with TA registering three revenue beats over its last four quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Growth Estimates & Valuation
TA carries a favorable near-term growth outlook; the Zacks Consensus EPS Estimate of $1.69 for the upcoming quarterly report suggests Y/Y earnings growth of an impressive 11%.
Looking at the bigger picture, the Zacks Consensus EPS Estimate of $7.56 for FY22 pencils in a steep 84% year-over-year uptick in earnings.
Top-line growth is also impressive; the FY22 revenue estimate of $10.6 billion pencils in a double-digit 44% increase year-over-year.
Pivoting to valuation, TA shares trade at solid valuation levels, as displayed by its Style Score of an A for Value. The company’s 0.08X forward price-to-sales ratio is tiny, representing a steep 94% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
Bottom Line
One of the best ways investors can find expected winners within the market is by utilizing the Zacks Rank – one of the most potent market tools out there.
A portfolio consisting of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 31 years with an average annual return of 24%.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
TravelCenters of America would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
Bull of the Day: TravelCenters of America (TA)
Substantial bottom-line beats thrill any investor, and for obvious reasons. One company that wowed investors in its latest report is TravelCenters Of America .
Another thrilling aspect of the company is that it carries a Zacks Rank #1 (Strong Buy), meaning that analysts have upped their earnings outlook significantly over the last several months.
Image Source: Zacks Investment Research
TravelCenters Of America is a full-service national travel center chain in the U.S.
In addition, TA has nationwide locations serving hundreds of thousands of professional drivers and other highway travelers each month, including virtually all major trucking fleets.
Let’s take a deeper dive into the company.
Share Performance & Quarterly Results
TravelCenters of America shares have been scorching hot over the last three months, gaining a jaw-dropping 65% in value and crushing its Zacks Sector.
In the chart below, the green arrow represents the company’s previous earnings release.
Image Source: Zacks Investment Research
The immense relative strength that TA shares have displayed over the recent term tells us one thing for sure, and it’s that buyers have been busy.
As we can see in the chart above, a substantial earnings beat undoubtedly fueled the massive move. In its latest quarter, TA reported earnings of $4.34 per share, crushing the Zacks Consensus EPS Estimate by a triple-digit 290%.
In fact, the company carries a four-quarter trailing average EPS surprise of a spectacular 1700%.
Top-line results have also been strong, with TA registering three revenue beats over its last four quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Growth Estimates & Valuation
TA carries a favorable near-term growth outlook; the Zacks Consensus EPS Estimate of $1.69 for the upcoming quarterly report suggests Y/Y earnings growth of an impressive 11%.
Looking at the bigger picture, the Zacks Consensus EPS Estimate of $7.56 for FY22 pencils in a steep 84% year-over-year uptick in earnings.
Top-line growth is also impressive; the FY22 revenue estimate of $10.6 billion pencils in a double-digit 44% increase year-over-year.
Pivoting to valuation, TA shares trade at solid valuation levels, as displayed by its Style Score of an A for Value. The company’s 0.08X forward price-to-sales ratio is tiny, representing a steep 94% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
Bottom Line
One of the best ways investors can find expected winners within the market is by utilizing the Zacks Rank – one of the most potent market tools out there.
A portfolio consisting of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 31 years with an average annual return of 24%.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
TravelCenters of America would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).