Today's Water-Logged And Getting Wetter Stock: AMC Networks (AMCX)
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 AMC Networks as such a stock due to the following factors:
- AMCX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $75.7 million.
- AMCX has traded 729,164 shares today.
- AMCX traded in a range 230.6% of the normal price range with a price range of $5.90.
- AMCX traded below its daily resistance level (quality: 5 days, meaning that the stock is crossing a resistance level set by the last 5 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 AMCX:
AMC Networks Inc. owns and operates various cable television's brands delivering content to audiences, and a platform to distributors and advertisers in the United States and internationally. The company operates in two segments, National Networks, and International and Other. AMCX has a PE ratio of 16. Currently there are 6 analysts that rate AMC Networks a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for AMC Networks has been 840,600 shares per day over the past 30 days. AMC has a market cap of $4.6 billion and is part of the services sector and media industry. The stock has a beta of 1.18 and a short float of 12% with 5.06 days to cover. Shares are up 20.8% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates AMC Networks as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.
Highlights from the ratings report include:
- AMCX's revenue growth has slightly outpaced the industry average of 5.6%. Since the same quarter one year prior, revenues rose by 15.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for AMC NETWORKS INC is rather high; currently it is at 56.79%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.80% is above that of the industry average.
- 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 41.5% when compared to the same quarter one year prior, rising from $58.66 million to $83.01 million.
- AMC NETWORKS INC has improved earnings per share by 37.3% in the most recent quarter compared to the same quarter a year ago. 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, AMC NETWORKS INC reported lower earnings of $3.62 versus $4.01 in the prior year. This year, the market expects an improvement in earnings ($4.86 versus $3.62).
- You can view the full AMC Networks Ratings Report.
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