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Trade-Ideas LLC identified

Dreamworks Animation SKG

(

DWA

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Dreamworks Animation SKG as such a stock due to the following factors:

  • DWA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $77.6 million.
  • DWA has traded 744.269000000000005456968210637569427490234375 options contracts today.
  • DWA is making at least a new 3-day high.
  • DWA has a PE ratio of 255.
  • DWA is mentioned 1.00 times per day on StockTwits.
  • DWA has not yet been mentioned on StockTwits today.
  • DWA is currently in the upper 20% of its 1-year range.
  • DWA is in the upper 35% of its 20-day range.
  • DWA is in the upper 45% of its 5-day range.
  • DWA is currently trading above yesterday's high.

TheStreet Recommends

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on DWA:

Dreamworks Animation SKG, Inc., together with its subsidiaries, primarily develops, produces, and exploits animated films and their associated characters worldwide. It operates through four segments: Feature Films, Television Series and Specials, Consumer Products, and New Media. DWA has a PE ratio of 255. Currently there are no analysts that rate Dreamworks Animation SKG a buy, 2 analysts rate it a sell, and 9 rate it a hold.

The average volume for Dreamworks Animation SKG has been 2.5 million shares per day over the past 30 days. Dreamworks Animation SKG has a market cap of $3.5 billion and is part of the services sector and media industry. The stock has a beta of 0.71 and a short float of 15.2% with 3.29 days to cover. Shares are up 58.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Dreamworks Animation SKG as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:

  • DWA's revenue growth has slightly outpaced the industry average of 4.6%. Since the same quarter one year prior, revenues rose by 14.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels.
  • 43.65% is the gross profit margin for DREAMWORKS ANIMATION INC which we consider to be strong. Regardless of DWA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.26% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Media industry and the overall market, DREAMWORKS ANIMATION INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$52.89 million or 3486.23% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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