ATLC provides credit services to over 6 million customers in the US and manages receivables over $6.6 billion following a successful new acquisition. Recently reported earnings showed a 25% increase in earnings and analysts expect annual earnings growth over 30% for the next five years. It trades at 10x earnings, 1.5x book and supports a ROE of 21%. We recommend setting a stop-loss at $40, looking to achieve $75 -- upside potential of 28%. Yield 0%
Our PAST TOP PICK with ATLC has triggered its stop at $54. To remain disciplined, we recommend covering the position at this time.