World Wrestling Entertainment (WWE) Stock: Weak On High Volume Today

Trade-Ideas LLC identified World Wrestling Entertainment (WWE) as a weak on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

World Wrestling Entertainment

(

WWE

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified World Wrestling Entertainment as such a stock due to the following factors:

  • WWE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.2 million.
  • WWE has traded 84,648 shares today.
  • WWE is trading at 2.85 times the normal volume for the stock at this time of day.
  • WWE is trading at a new low 3.02% 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 WWE with the Ticky from Trade-Ideas. See the FREE profile for WWE NOW at Trade-Ideas

More details on WWE:

World Wrestling Entertainment, Inc., an integrated media and entertainment company, engages in the sports entertainment business in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The stock currently has a dividend yield of 2.4%. WWE has a PE ratio of 54. Currently there are 2 analysts that rate World Wrestling Entertainment a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for World Wrestling Entertainment has been 467,100 shares per day over the past 30 days. World Wrestling Entertainment has a market cap of $1.5 billion and is part of the services sector and media industry. The stock has a beta of 0.69 and a short float of 33.3% with 15.95 days to cover. Shares are up 13.1% year-to-date as of the close of trading on Monday.

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.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates World Wrestling Entertainment as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • WORLD WRESTLING ENTMT INC has improved earnings per share by 38.5% 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 two years. We feel that this trend should continue. During the past fiscal year, WORLD WRESTLING ENTMT INC turned its bottom line around by earning $0.32 versus -$0.40 in the prior year. This year, the market expects an improvement in earnings ($0.46 versus $0.32).
  • 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 42.1% when compared to the same quarter one year prior, rising from $9.77 million to $13.89 million.
  • WWE's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.19, which illustrates the ability to avoid short-term cash problems.
  • 45.27% is the gross profit margin for WORLD WRESTLING ENTMT 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 8.11% trails the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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.

Loading ...