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 strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified News as such a stock due to the following factors:
- NWS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.4 million.
- NWS has traded 131,178 shares today.
- NWS is trading at 4.16 times the normal volume for the stock at this time of day.
- NWS is trading at a new high 4.01% 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 NWS:
News Corporation, a media and information services company, focuses on creating and distributing authoritative and engaging content to consumers and businesses worldwide. NWS has a PE ratio of 32.1. Currently there are no analysts that rate News a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for News has been 1.5 million shares per day over the past 30 days. News has a market cap of $3.0 billion and is part of the services sector and media industry. The stock has a beta of 1.12 and a short float of 2.7% with 2.50 days to cover. Shares are up 0.9% year-to-date as of the close of trading on Thursday.
rates News as a
. 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 and revenue growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Highlights from the ratings report include:
- NEWS CORP reported significant earnings per share improvement 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, NEWS CORP turned its bottom line around by earning $0.41 versus -$1.92 in the prior year. This year, the market expects an improvement in earnings ($0.50 versus $0.41).
- 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 140.7% when compared to the same quarter one year prior, rising from $27.00 million to $65.00 million.
- 38.88% is the gross profit margin for NEWS CORP which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, NWS's net profit margin of 3.02% significantly trails the industry average.
- Compared to other companies in the Media industry and the overall market on the basis of return on equity, NEWS CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
- NWS has underperformed the S&P 500 Index, declining 9.18% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full News Ratings Report.