Scripps Networks Interactive (SNI) Is Today's Water-Logged And Getting Wetter Stock
Trade-Ideas LLC identified
(
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Scripps Networks Interactive as such a stock due to the following factors:
- SNI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $69.5 million.
- SNI has traded 2.3 million shares today.
- SNI traded in a range 261.8% of the normal price range with a price range of $3.31.
- SNI traded below its daily resistance level (quality: 4 days, meaning that the stock is crossing a resistance level set by the last 4 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on SNI:
Scripps Networks Interactive, Inc. develops lifestyle-oriented content for linear and interactive video platforms in the United States, the United Kingdom and other European markets, the Middle East and Africa, the Asia-Pacific, and Latin America. The stock currently has a dividend yield of 1.5%. SNI has a PE ratio of 14. Currently there are 4 analysts that rate Scripps Networks Interactive a buy, 2 analysts rate it a sell, and 11 rate it a hold.
The average volume for Scripps Networks Interactive has been 1.5 million shares per day over the past 30 days. Scripps Networks Interactive has a market cap of $5.6 billion and is part of the services sector and media industry. The stock has a beta of 1.71 and a short float of 13.3% with 9.59 days to cover. Shares are down 18.6% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Scripps Networks Interactive as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk.
Highlights from the ratings report include:
- SCRIPPS NETWORKS INTERACTIVE has improved earnings per share by 39.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, SCRIPPS NETWORKS INTERACTIVE increased its bottom line by earning $3.83 versus $3.40 in the prior year. This year, the market expects an improvement in earnings ($4.52 versus $3.83).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 25.9% when compared to the same quarter one year prior, rising from $153.79 million to $193.72 million.
- The debt-to-equity ratio is very high at 2.49 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 8.46, which shows the ability to cover short-term cash needs.
- SNI has underperformed the S&P 500 Index, declining 22.84% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- You can view the full Scripps Networks Interactive Ratings Report.
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