Why Cazoo Group Ltd (NYSE: CZOO) Is A Great Stock Pick For Momentum Investors

Cazoo Group Ltd (NYSE:CZOO) shares, rose in value, with the stock price up by 18.20% to the previous day’s close as strong demand from buyers drove the stock to $11.69.

Actively observing the price movement in the last trading, the stock closed the session at $9.89. Referring to stock’s 52-week performance, its high was $295.00, and the low was $2.11. On the whole, CZOO has fluctuated by 164.70% over the past month.

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Analysts have estimated the company’s revenue for the quarter at $344.97 million, with a low estimate of $375.37 million and a high estimate of $375.37 million. Wall Street analysts also predicted that in 2023, the company’s y-o-y revenues would reach $1.58 billion, representing an increase of 90.70% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that CZOO’s technical picture suggests that short-term indicators denote the stock is a Hold on average. However, medium term indicators have put the stock in the category of 50% Sell while long term indicators on average have been pointing out that it is a 100% Sell.

The stock’s technical analysis shows that the PEG ratio is about 0, with the price of CZOO currently trading nearly 145.64% and 154.44% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 69.07, while the 7-day volatility ratio is showing 60.80% which for the 30-day chart, stands at 38.23%. Furthermore, Cazoo Group Ltd (CZOO)’s beta value is 2.42, and its average true range (ATR) is 2.21.

A comparison of Cazoo Group Ltd (CZOO) with its peers suggests the former has fared considerably weaker in the market. CZOO showed an intraday change of 18.20% in last session, and over the past year, it shrunk by -95.31%%.

Data on historical trading for Cazoo Group Ltd (NYSE:CZOO) indicates that the trading volumes over the past 10 days have averaged 6.37 million and over the past 3 months, they’ve averaged 1.05 million. According to company’s latest data on outstanding shares, there are 4.89 million shares outstanding.

Nearly 12.12% of Cazoo Group Ltd’s shares belong to company insiders and institutional investors own 69.29% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 42170.0 shares as on Mar 15, 2024, resulting in a short ratio of 1.01. According to the data, the short interest in Cazoo Group Ltd (CZOO) stood at 0.86% of shares outstanding as of Mar 15, 2024; the number of short shares registered in Feb 15, 2024 reached 36330.0. The stock has risen by 23.05% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the CZOO stock heading into the next quarter.