Zipcar Finally Turns the Corner

Investors rarely think of runaway growth stocks when focusing on the auto sector, but Zipcar brings a high-growth yet value-oriented service into the personal transportation market. Zipcar offers reasonable hourly rates for vehicles, provides on-demand access to transportation, and disrupts the staid car-rental market.

Not only is the service attractively priced, but Zipcar's stock has recently looked more attractive as well. The CEO projects that the company will post an annual profit for the first time this year, while growing revenue at a healthy double-digit clip each quarter. Instead of watching the wheels come off, investors might be looking at a stock with an impressive runway ahead of it. 

In the following video, Motley Fool transportation analyst Isaac Pino makes the case for looking at Zipcar as a value play with impressive growth prospects. 

Right now, the market is simply ignoring the massive cash investments Zipcar is making in various areas of the business, as outlined in our brand-new premium research report. In this report, Isaac dissects Zipcar's business model, revealing this game-changing company's opportunities and threats in the process. Click here now to download the report.


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  • Report this Comment On December 18, 2012, at 2:15 PM, mrbkush wrote:

    Definition of 'Value Stock'

    A stock that tends to trade at a lower price relative to it's fundamentals (i.e. dividends, earnings, sales, etc.) and thus considered undervalued by a value investor. Common characteristics of such stocks include a <b>high dividend yield, low price-to-book ratio and/or low price-to-earnings ratio.</b>

    It's a value stock because it's crashed?

    You forget some key competitors. Enterprise, Car2Go U-Haul and true car sharing local non-profits.

    And the gum chewing...

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