Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified CBS as such a stock due to the following factors:
- CBS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $692.6 million.
- CBS has traded 1.7 million shares today.
- CBS traded in a range 270% of the normal price range with a price range of $3.25.
- CBS traded above its daily resistance level (quality: 12 days, meaning that the stock is crossing a resistance level set by the last 12 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in CBS with the Ticky from Trade-Ideas. See the FREE profile for CBS NOW at Trade-Ideas
More details on CBS:
CBS Corporation operates as a mass media company in the United States and internationally. It operates in five segments: Entertainment, Cable Networks, Publishing, Local Broadcasting, and Outdoor Americas. The stock currently has a dividend yield of 0.8%. CBS has a PE ratio of 19.3. Currently there are 15 analysts that rate CBS a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for CBS has been 8.0 million shares per day over the past 30 days. CBS has a market cap of $31.2 billion and is part of the services sector and media industry. The stock has a beta of 1.92 and a short float of 1.8% with 0.83 days to cover. Shares are down 7.7% year-to-date as of the close of trading on Tuesday.
rates CBS as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- CBS CORP has improved earnings per share by 6.8% 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, CBS CORP increased its bottom line by earning $3.01 versus $2.48 in the prior year. This year, the market expects an improvement in earnings ($3.49 versus $3.01).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Media industry average, but is less than that of the S&P 500. The net income increased by 5.6% when compared to the same quarter one year prior, going from $443.00 million to $468.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Media industry and the overall market, CBS CORP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- You can view the full CBS Ratings Report.