Telefonica Brasil (VIV) Weak On High Volume
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Telefonica Brasil as such a stock due to the following factors:
- VIV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.9 million.
- VIV has traded 189,272 shares today.
- VIV is trading at 2.35 times the normal volume for the stock at this time of day.
- VIV is trading at a new low 3.05% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. 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 (or avoid losses by trimming weak positions). 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in VIV with the Ticky from Trade-Ideas. See the FREE profile for VIV NOW at Trade-Ideas
More details on VIV:
Telefonica Brasil S.A. provides fixed-line and mobile telecommunications services to residential and corporate customers in Brazil. The stock currently has a dividend yield of 3.6%. VIV has a PE ratio of 25. Currently there are 4 analysts that rate Telefonica Brasil a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Telefonica Brasil has been 1.9 million shares per day over the past 30 days. Telefonica Brasil has a market cap of $22.9 billion and is part of the technology sector and telecommunications industry. Shares are up 48.7% year-to-date as of the close of trading on Tuesday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Telefonica Brasil as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Telecommunication Services industry. The net income increased by 88.5% when compared to the same quarter one year prior, rising from $182.06 million to $343.16 million.
- VIV's revenue growth trails the industry average of 19.9%. Since the same quarter one year prior, revenues slightly increased by 4.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- VIV's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.73 is somewhat weak and could be cause for future problems.
- TELEFONICA BRASIL SA has improved earnings per share by 29.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, TELEFONICA BRASIL SA reported lower earnings of $0.88 versus $2.51 in the prior year. For the next year, the market is expecting a contraction of 15.3% in earnings ($0.75 versus $0.88).
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Diversified Telecommunication Services industry and the overall market, TELEFONICA BRASIL SA's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full Telefonica Brasil Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.