Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Autobytel

(

ABTL

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Autobytel as such a stock due to the following factors:

  • ABTL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.5 million.
  • ABTL has traded 142.462999999999993860910763032734394073486328125 options contracts today.
  • ABTL is making at least a new 3-day high.
  • ABTL has a PE ratio of 48.
  • ABTL is mentioned 1.16 times per day on StockTwits.
  • ABTL has not yet been mentioned on StockTwits today.
  • ABTL is currently in the upper 20% of its 1-year range.
  • ABTL is in the upper 35% of its 20-day range.
  • ABTL is in the upper 45% of its 5-day range.
  • ABTL is currently trading above yesterday's high.

TheStreet Recommends

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on ABTL:

Autobytel Inc. operates as an automotive marketing services company in the United States. It assists automotive retail dealers and manufacturers to market and sell new and used vehicles to consumers through its programs. ABTL has a PE ratio of 48. Currently there are 4 analysts that rate Autobytel a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Autobytel has been 125,900 shares per day over the past 30 days. Autobytel has a market cap of $187.5 million and is part of the technology sector and internet industry. The stock has a beta of 1.79 and a short float of 1.9% with 1.22 days to cover. Shares are up 65% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Autobytel as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 108.9% when compared to the same quarter one year prior, rising from $0.37 million to $0.77 million.
  • Although ABTL's debt-to-equity ratio of 0.25 is very low, it is currently higher than that of the industry average. To add to this, ABTL has a quick ratio of 1.96, which demonstrates the ability of the company to cover short-term liquidity needs.
  • AUTOBYTEL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AUTOBYTEL INC reported lower earnings of $0.34 versus $3.47 in the prior year. This year, the market expects an improvement in earnings ($1.24 versus $0.34).
  • Net operating cash flow has significantly decreased to -$0.53 million or 160.57% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Internet Software & Services industry and the overall market, AUTOBYTEL INC's return on equity is below that of both the industry average and the S&P 500.

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