NEW YORK (TheStreet) -- TheStreet's Jim Cramer says it is probably too late to buy on a DirecTV (DTV - Get Report) and DISH Network (DISH - Get Report) merger and that investors should wait for them to pull back somewhat.
He notes the speculation last week called this merger a done deal, but he disagrees; however, he likes both companies and thinks they can climb higher over time.
Finally, Cramer points out that Starbucks (SBUX - Get Report) rose 4% on its recent meeting, but nothing substantive took place during it to explain that move. He wants to buy the stock as it pulls back to the $71 or $72 mark.Must Watch: Jim Cramer on Dish Merger, Solar Investing and Starbucks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. --------- Separately, TheStreet Ratings team rates DIRECTV as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DIRECTV (DTV) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- DTV's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 6.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, DTV's share price has jumped by 30.45%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DTV should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Net operating cash flow has increased to $2,039.00 million or 35.84% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.75%.
- DIRECTV' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DIRECTV increased its bottom line by earning $5.19 versus $4.61 in the prior year. This year, the market expects an improvement in earnings ($5.97 versus $5.19).
- 44.72% is the gross profit margin for DIRECTV which we consider to be strong. Regardless of DTV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.42% trails the industry average.
- You can view the full analysis from the report here: DTV Ratings Report