Hudson Capital Inc. (HUSN) operates a transportation logistics technology platform in North America. It recently acquired Freight App, Inc. as a wholly-owned subsidiary and projects 2022 revenue to grow over 86% year-over-year. In addition, its newly launched technology solution, Fr8PrivateFleet, has already secured new and existing customers, including one of Mexico’s largest food producers.

HUSN sold its wholly-owned subsidiary, Hong Kong Internet Financial Services, to private investors. The stock has lost 56.8% over the past three months and 67.1% over the past nine months to close Friday’s trading session at $2.63. Furthermore, it is currently trading 73.4% below its 52-week high of $9.90, which it hit on August 5, 2021.

Here’s what could influence HUSN’s performance in the upcoming months:

Low Profitability

In terms of trailing-12-month CAPEX/Sales, HUSN’s 1.47% is lower than the industry average of 1.57%. Moreover, the stock’s trailing-12-month net income margin, ROTC, and ROTA are negative compared to the industry averages of 30.59%, 6.09%, and 1.34%, respectively.

Stretched Valuation

In terms of trailing-12-month EV/S, HUSN’s 13.64x is 356.3% higher than the industry average of 2.99x. Likewise, its trailing-12-month P/S of 3.83x is 22.5% higher than the industry average of 3.12x.

POWR Ratings Reflect Bleak Prospects

HUSN has an overall rating of D, which equates to Sell in our POWR Ratings system. The POWR Ratings are calculated by accounting for 118 different factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight different categories. HUSN has a D grade for Quality, in sync with its lower-than-industry profitability ratios.

The stock has an F grade for Value, in sync with its higher-than-industry valuation ratios.

HUSN is ranked #100 out of 103 stocks in the D-rated Financial Services (Enterprise) industry. Click here to access HUSN’s ratings for Growth, Stability, Sentiment, and Momentum.

Bottom Line

HUSN is currently trading below its 50-day and 200-day moving averages of $3.21 and $5.29, respectively, indicating a downtrend. As the stock looks overvalued at the current price level, it is best to avoid it now.

How Does Hudson Capital (HUSN) Stack Up Against its Peers?

While HUSN has an overall POWR Rating of D, you might want to consider investing in the following Financial Services (Enterprise) stocks with an A (Strong Buy) or B (Buy) rating: Forrester Research, Inc. (FORR), Consumer Portfolio Services, Inc. (CPSS), and Everi Holdings Inc. (EVRI).

HUSN shares rose $0.06 (+2.39%) in after-hours trading Monday. Year-to-date, HUSN has declined -58.81%, versus a -3.52% rise in the benchmark S&P 500 index during the same period.

About the Author: Nimesh Jaiswal

Nimesh Jaiswal's fervent interest in analyzing and interpreting financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach that he follows while advising investors in his articles. More...

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