Strong On High Relative Volume: World Wrestling Entertainment (WWE)
Trade-Ideas LLC identified
(
) as a strong 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 $9.2 million.
- WWE has traded 106,995 shares today.
- WWE is trading at 5.97 times the normal volume for the stock at this time of day.
- WWE is trading at a new high 7.29% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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.
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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 2.8%. WWE has a PE ratio of 53. 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 534,400 shares per day over the past 30 days. World Wrestling Entertainment has a market cap of $1.3 billion and is part of the services sector and media industry. The stock has a beta of 0.67 and a short float of 36.8% with 17.86 days to cover. Shares are down 2.3% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates World Wrestling Entertainment as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. 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:
- WWE's revenue growth has slightly outpaced the industry average of 9.7%. Since the same quarter one year prior, revenues rose by 18.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- WWE's debt-to-equity ratio is very low at 0.10 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 1.22, which illustrates the ability to avoid short-term cash problems.
- 38.37% 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 -0.66% is in-line with 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. When compared to other companies in the Media industry and the overall market, WORLD WRESTLING ENTMT INC's return on equity is below that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $17.64 million or 70.56% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full World Wrestling Entertainment Ratings Report.
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