The following ratings changes were generated on Monday, Nov. 17.
We've upgraded Cablevision (CVC) from sell to hold. Strengths include its revenue growth, impressive record of earnings per share growth and increase in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Cablevision's revenue rose by 15.4% since the same quarter one year prior, outpacing the industry average of 9.8% growth and boosting earnings per share, which improved significantly in the most recent quarter compared with the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years, which we feel should continue, suggesting improving business performance. During the past fiscal year, Cablevision turned its bottom line around by earning 7 cents vs. -48 cents in the prior year. This year, the market expects an improvement to 67 cents.
The company's quick ratio of 0.33 is very low and demonstrates very weak liquidity. Cablevision's gross profit margin of 57.7% is rather high, but it has decreased from the same period last year. The net profit margin of 1.6% trails the industry average.Shares are down 45.92% on the year, underperforming the S&P 500. But don't assume that it's sharp decline in share price makes the stock cheap and attractive. Based on its current price in relation to its earnings, Cablevision is still more expensive than most of the other companies in its industry
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV