Vroom Inc. (VRM) shares are trading at higher $35.46 and the avg recommendation for the stock is Strong Buy, while the current analyst price target stands at $56.70.
To add more color to this target, the company’s high over the last year is $75.49 and the low is $32.84 while the S&P 500 is up 17.22%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, VRM reported a profit of $25.45 million. Vroom Inc. also saw revenues increase to $323.0 million. In addition, VRM has free cash flow of -$187.93 million as of 09-2020. The company’s EBITDA came in at -$35.4 million which compares well with its peers.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. VRM has a short ratio of 3.54 and outstanding shares of 121.12M.
VRM has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.16 million and more growth is possible in the weeks ahead. Vroom Inc. VRM also noted assets of $1.65 billion at the end of the last quarter. Investors should also keep an eye on sector updates as VRM has historically followed its peers on positive news.
All told, Vroom Inc. VRM has strung together solid data and demonstrated underlying fundamentals. At its current valuation, VRM represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Vroom Inc. VRM is now commanding a market cap of 4.63B and a float of 108.71M. VRM is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of VRM stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in VRM, either long or short, and we have not been compensated for this article.