Entravision Communications (EVC) Showing Signs Of Being Strong And Under The Radar

Trade-Ideas LLC identified Entravision Communications (EVC) as a strong and under the radar candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Entravision Communications

(

EVC

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Entravision Communications as such a stock due to the following factors:

  • EVC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • EVC has traded 30.582100000000000505906427861191332340240478515625 options contracts today.
  • EVC is making at least a new 3-day high.
  • EVC has a PE ratio of 31.
  • EVC is mentioned 1.26 times per day on StockTwits.
  • EVC has not yet been mentioned on StockTwits today.
  • EVC is currently in the upper 20% of its 1-year range.
  • EVC is in the upper 35% of its 20-day range.
  • EVC is in the upper 45% of its 5-day range.
  • EVC is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on EVC:

Entravision Communications Corporation, operates as a diversified media company that utilizes a combination of television, radio, and digital media properties to reach Hispanic consumers in the United States and the border markets of Mexico. The stock currently has a dividend yield of 1.1%. EVC has a PE ratio of 31. Currently there are 2 analysts that rate Entravision Communications a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Entravision Communications has been 444,200 shares per day over the past 30 days. Entravision has a market cap of $558.9 million and is part of the services sector and media industry. The stock has a beta of 1.59 and a short float of 4.7% with 8.57 days to cover. Shares are up 36.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Entravision Communications as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, EVC's share price has jumped by 68.88%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • The gross profit margin for ENTRAVISION COMMUNICATIONS is rather high; currently it is at 52.52%. Regardless of EVC'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 8.75% trails the industry average.
  • EVC, with its decline in revenue, slightly underperformed the industry average of 5.6%. Since the same quarter one year prior, revenues slightly dropped by 3.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The debt-to-equity ratio is very high at 2.20 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 3.33, which shows the ability to cover short-term cash needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Media industry and the overall market on the basis of return on equity, ENTRAVISION COMMUNICATIONS has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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