Alliance Data Systems Corporation (NYSE:ADS) traded at $55 at last check on Friday, Oct 16, making an upward move of 4.44% on its previous day’s price.
Looking at the stock we see that its previous close was $52.66 and the beta (5Y monthly) reads 2.55 with the day’s price range being $52.86 – 55.68. The company has a 12-month trailing PE ratio of 9.16. In terms of its 52-week price range, ADS has a high of $125.78 and a low of $20.51. The company’s stock has gained about 15.79% over that past 30 days.
Alliance has a market cap of $2.61 Billion and is expected to release its quarterly earnings report on October 29, 2020. With its Forward Dividend at 0.84 and a yield of 1.53%, the company’s investors could be anxious for the ADS stock to gain ahead of the earnings release. Estimates by analysts give the company expected earnings per share (EPS) of $2.2, with the EPS growth for the year declined at $6.75 for 2020 and $11.41 for next year. These figures represent -0.6% and at 0.69% growth in EPS for the two years respectively.
Analysts tracking the company’s growth have also given it a consensus growth in revenue estimated at $1.01 Billion, with a low of $924.6 Million and a high of $1.16 Billion. The median projection represents growth adding up to -29.4% compared to sales earnings for the corresponding quarter a year ago. According to analyst consensus estimates figures, the company’s yearly revenue forecasts for 2020 are expected to hit $4.45 Billion, or -20.3% down from figures reported last year.
There have been 2 upward and no downward revisions for the stock’s EPS in last 7 days, something that reflects the nature of company’s price movement in short term. On the other hand, looking at the outlook for the ADS stock, short term indicators assign the stock an average of Hold, while medium term indicators assign it an average of Hold. Long term indicators on average place the stock in the category of Hold.
Based on estimates by 20 analysts where scores have ranged from 1.00 for a strong buy to 5.00 for a strong sell, 8 have rated the Alliance Data Systems Corporation (ADS) stock as a Hold, while 11 rate it as a Buy. None analysts rate it as outperform while none of them rated it as underperform, whereas 1 suggests the stock as a Sell. The stock has an overall rating of Overweight and investors could take advantage and scoop up stock of the company.
Looking further, we note that the PEG ratio for the ADS stock currently stands at 1.54, and the current price level is 19.78% off its SMA20 and 19.5% from its 50-day simple moving average. The RSI (14) is pointing at 74.62 while the volatility over the past week is 4.4% and jumps to 4.7% over the past one month. The beta value is 2.55, while the average true range (ATR) is currently pointing at 2.3. The average price target for the stock over the next 12 months is $63.44, with the estimates having a low of $35 and a high of $90. These price ends are -36.36% and +63.64% off the current price level respectively, although investors could be excited at the prospect of a +16.36% if the ADS share price touches on the median price of $64.
Let’s briefly compare Alliance (ADS) stock to its peers. We find that today’s price change of +4.44% and -55.42% over the past 12 months for ADS competes that of Visa Inc (V), which has seen its stock price rise 0.36% in the latest trading session and is +12.54% over the last one year. Another of its peers Mastercard Inc (MA) has climbed 0.25% today, and is +22.74% up over the past year, while Fidelity National Information Services (FIS) is also up 4.44% yet its price remains in the red at -55.42% over the same period. Visa has a P/E ratio of 38.08 compared to Alliance’s 9.16 and Mastercard’s 47.14. In contrast to these companies, both the S&P 500 Index and the Dow Jones Industrial are today at 0.01% and 0.39%, respectively, in early deals.
Coming back to Alliance Data Systems Corporation (NYSE:ADS), we note that the average 3-month trading volume was 993.91 Million, while that of the preceding 10-day period stands at 924.02 Million. Current shares outstanding are 47.72 Million.
According to data from Thomson Reuters, insiders hold 3.3% of the company’s shares while institutions hold 97.34%. The data shows that short shares as of September 29, 2020, stood at 1.47 Million at a short ratio of 1.43. This represents a 3.08% Short interest in Shares outstanding on September 29, 2020. Shares short dropped in September from the previous month at 1.64 Million. Investors should be excited about this stock as its upside potential is great, with today’s price pushing the stock -50.98% down in year-to-date price movement.