Amerigon, Inc.

Amerigon Inc. (ARGN - Snapshot Report) shares have taken a hit, but with the current support level and valuations this could be a good time to scoop up shares of this Zacks #1 Rank (Strong Buy).

Company Description

Amerigon makes thermal management technologies with temperature control applications. Automotive products include ventilation as well as seat, cup holder, and steering wheel devices.

Revenues Surge

On Aug 9 Amerigon reported second-quarter results. Revenues rose 168% to $77.1 million, thanks in large part to a recent acquisition.

Earnings came in at $0.11 per share, meeting the Zacks Consensus Estimate. Amerigon has met or beat expectations in every quarter for the past 2 years.

Forecasts Up Nicely

The Zacks Consensus Estimate for this year is up 5 cents, to $0.53 on the earnings news. Next year's average forecast jumped 29 cents, to $0.91. In 2010 Amerigon made $0.44, so expected growth rates are now at 20% and 72%, respectively.

Valuations

Thanks in part to those rising estimates; the valuations are looking attractive here. Shares are going for 13 times the 2012 consensus and have a PEG ratio of just 0.8 times.

The Chart

While the market has been in a sharp downward slide, shares of ARGN look like they have established a nice level of support here. That could make for a great entry point.

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service

Read the full analyst report on ARGN