Storm The Castle: Twenty-First Century Fox (FOX)

Trade-Ideas LLC identified Twenty-First Century Fox (FOX) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Twenty-First Century Fox

(

FOX

) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Twenty-First Century Fox as such a stock due to the following factors:

  • FOX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $63.6 million.
  • FOX has traded 2.7 million shares today.
  • FOX is trading at 1.65 times the normal volume for the stock at this time of day.
  • FOX crossed above its 200-day simple moving average.

'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on FOX:

Twenty-First Century Fox, Inc. operates as a diversified media and entertainment company worldwide. It operates through Cable Network Programming; Television; Filmed Entertainment; and Other, Corporate and Eliminations segments. The stock currently has a dividend yield of 1.1%. FOX has a PE ratio of 15. Currently there is 1 analyst that rates Twenty-First Century Fox a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Twenty-First Century Fox has been 2.9 million shares per day over the past 30 days. Twenty-First Century Fox has a market cap of $53.0 billion and is part of the services sector and media industry. The stock has a beta of 1.49 and a short float of 1.5% with 2.81 days to cover. Shares are up 3.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Twenty-First Century Fox as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, attractive valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • FOX's revenue growth has slightly outpaced the industry average of 4.1%. Since the same quarter one year prior, revenues slightly increased by 5.7%. 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.
  • 38.13% is the gross profit margin for TWENTY-FIRST CENTURY FOX INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.63% trails the industry average.
  • Net operating cash flow has remained constant at $1,775.00 million with no significant change when compared to the same quarter last year. This quarter, TWENTY-FIRST CENTURY FOX INC's cash flow growth rate has remained relatively unchanged and is slightly below the industry average.
  • 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, TWENTY-FIRST CENTURY FOX INC's return on equity exceeds that of both the industry average and the S&P 500.

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