August 4, 2011
SpeculatingStocks.com Stock Pick: Zipcar, Inc. (ZIP)
Stock Price: $23.09
Zipcar, Inc. is a leading car sharing network with more than 605,000 members and over 9,000 vehicles in urban areas and college campuses throughout the United States, Canada and the United Kingdom. The company offers more than 30 makes and models of self-service vehicles by the hour or day.
ZIP is leading the way in a space that could replace current car rental services as we know them. As the Internet is becoming more social, so are other things and now people are openly sharing cars.
We believe that people will open up to the idea of sharing their car more and more.
ZIP's earnings showed major traction. Revenue increased in its latest quarter by 34% to $61.6 million compared to $46.0 million for the same period last year. Total members grew 29% from the same period last year. The company also increased its 2011 outlook.
ZIP just IPO'd in April of this year, but we believe it could eclipse its IPO high of $31.50.
Zipcar has a lot of room to expand. We believe this could turn out to be a big winner in the long run.
Speculative Score: 2
1 Being the Least Speculative and Most Confident
10 Being the Most Speculative and Possibly the Most Risky