This stock came through my screener a few months ago. Here’s a few quick stats.

  • PEG Ratio of 1.4
  • P/E of 47
  • Debt-to-Equity Ratio of 18%
  • Insider buying

Recently, Autobytel released their earnings and they were impressive enough to send the stock price up 24%. Along with the increase in earnings came an increase in valuations which is testing my good sense to recommend this stock. When I first came across this stock, it was a bargain. The PEG Ratio was 0.7 and the P/E Ratio was 21. I’m keeping an eye on it for the time being.

It’s not a new company. They were one of the first dot com companies to have a Super Bowl ad. There are other companies in this space like AutoTrader who are much larger. Nonetheless, Autobytel has managed to carve out some market share. In their latest release, earnings were up but subscribers were down. I’ve also read that management doesn’t hold back on compensating themselves which gives me some pause for concern. As the American economy picks up again, people will be buying cars which is why I’d consider Autobytel a cyclical as much as it is a fast grower. It’s a stock worth watching.

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