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Bear of the Day: AutoWeb (AUTO)

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Some online or mobile auto sales companies are rocking and rolling. Just ask Carvana (CVNA - Free Report) shareholders basking in the light. Car sales have continued to come in at or near records from a lot of manufacturers. Crossover sales have helped a bunch, but so has the overall global economy strength. This car sales company is not doing so well. It’s a Zacks Rank #5 (Strong Sell) and our Bear of the Day, formerly known as Autobytel, Autoweb .

AutoWeb, 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. The company's products include new vehicle lead program, which allows consumers to submit requests for pricing and availability of specific makes and models; and used vehicle lead program, as well as finance leads program, which provides vehicle financing and other services from dealers or financial institutions. It owns and operates an automotive Website, Autobytel.com that offers consumers the information and tools to aid them with their automotive purchase decisions; and an automotive search engine that enables manufactures and dealers to optimize advertising campaigns. 

Autobytel Inc. Price and Consensus

Autobytel Inc. Price and Consensus | Autobytel Inc. Quote

The reason for the harsh Zacks Rank is the recent string of bearish estimate revisions following the last earnings reports. For the current year, two analysts have cut their earnings estimates. The bearish moves have dropped our Zacks Consensus Estimate from 95 cents down to 22 cents. The current quarter number has come down from 17 cents to negative 2. That sort of contraction is not what you want to see when you’re investing for the long run.

Investors looking for other stocks within the auto industry should check out Zacks Rank #2 (Buy) stocks Fox Factory Holding (FOXF - Free Report) or PACCAR (PCAR - Free Report) .

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