(TRUE) TrueCar - Ratings and Ratios

TrueCar Inc (NASDAQ:TRUE) is a US-based company that has revolutionized the automotive industry by providing an internet-based platform for car buyers and sellers to connect with certified dealers. The companys flagship website and mobile applications offer market-based pricing data on new and used cars, enabling consumers to make informed decisions. Additionally, TrueCar provides a range of services, including TrueCar Access, which offers trade and payment solutions, and Sell Your Car and Trade, which gives consumers a guaranteed trade-in price for their vehicles.

By leveraging its technology and data analytics capabilities, TrueCar has established itself as a key player in the automotive industry, facilitating transactions between buyers and sellers. The companys network of certified dealers benefits from increased transparency and efficiency, while consumers enjoy a more streamlined car-buying experience. With its headquarters in Santa Monica, California, TrueCar has been operating since its incorporation in 2005, initially under the name Zag.com Inc.

Analyzing the available data, we can observe that TrueCars stock has experienced significant volatility, with a 52-week high of $4.57 and a low of $1.28. The current price of $1.50 is near the 20-day SMA of $1.44, indicating a potential buying signal. However, the 50-day SMA of $1.61 and 200-day SMA of $3.01 suggest a longer-term downtrend. The ATR of 0.14 (9.06% of the current price) indicates moderate volatility.

From a fundamental perspective, TrueCars market capitalization stands at $129.52M, with a forward P/E ratio of 14.45. The companys return on equity is negative, at -22.74%, indicating that it has not been profitable in recent times. Nevertheless, the forward P/E ratio suggests that investors are expecting future growth. Combining this with the technical data, we can forecast that if TrueCar can demonstrate improved profitability and stabilize its stock price above the 20-day SMA, it may attract more investors, potentially driving the price towards the 50-day SMA of $1.61. However, failure to achieve this may result in further declines, potentially towards the 52-week low.

Based on the analysis, a potential trading strategy could be to monitor TrueCars stock for a breakout above the 50-day SMA, accompanied by improved fundamental performance. If this occurs, it may be a buying opportunity, with a potential target price of $2.50-$3.00. Conversely, if the stock continues to underperform, a short-selling strategy may be considered, with a stop-loss above the 50-day SMA.