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 $3.0 million.
  • ABTL has traded 70.9402999999999934743755147792398929595947265625 options contracts today.
  • ABTL is making at least a new 3-day high.
  • ABTL has a PE ratio of 47.
  • ABTL is mentioned 1.84 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 47. 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 122,700 shares per day over the past 30 days. Autobytel has a market cap of $183.6 million and is part of the technology sector and internet industry. The stock has a beta of 1.19 and a short float of 1.6% with 0.90 days to cover. Shares are up 65.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Autobytel as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 17.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Internet Software & Services industry average. The net income increased by 8.9% when compared to the same quarter one year prior, going from $0.80 million to $0.87 million.
  • Net operating cash flow has significantly increased by 55.23% to $2.99 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 19.34%.
  • Despite currently having a low debt-to-equity ratio of 0.37, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that ABTL's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.27 is high and demonstrates strong liquidity.
  • Compared to its closing price of one year ago, ABTL's share price has jumped by 117.51%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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