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Bull Of The Day: CarParts.com (PRTS)

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CarParts.com (PRTS - Free Report) is a Zacks Rank #1 (Strong Buy) and it sports a C for Value and a B for Growth.  This company just posted a good beat and has seen a solid move higher.  Let’s explore more about this company in this Bull of The Day article.

Description

CarParts.com Inc. offer e-commerce automotive aftermarket, providing collision, engine and performance parts and accessories. CarParts.com Inc., formerly known as U.S. Auto Parts Network Inc., is headquartered in Torrance, California.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

For PRTS, I see four straight beats of the Zacks Consensus Estimate.  That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).

The average positive earnings surprise over the course of the last year works out to be 101%.

Earnings Estimates Revisions

The Zacks Rank tells us which stocks are seeing earnings estimates move higher. 

Over the last 60 days, earning estimates have moved up for ZS.

This quarter has moved from a loss of 14 cents to a loss of 13 cents.

Next quarter has increased from $0.00 to $0.03.

The full fiscal year 2022 has increased from a loss of $0.11 to a loss of $0.03.

Next fiscal year has seen the estimate move from -$0.12 to -$0.05.

Positive movement in earnings stock is a Zacks Rank #1 (Strong Buy).

Valuation

The valuation for this name low, but since the company isn’t making money there is no forward PE to lean on.  The price to book is 2.4x which is below the 3x level that value investors need to see. Price to sales comes in a 0.42x and has room to grow.  I see margins increasing in each of the last two quarters and with revenue growth slated to come in at 13%, this name looks very attractive.


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