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 "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified DISH Network as such a stock due to the following factors:
- DISH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $124.0 million.
- DISH has traded 3.3 million shares today.
- DISH traded in a range 263.7% of the normal price range with a price range of $5.42.
- DISH traded below its daily resistance level (quality: 23 days, meaning that the stock is crossing a resistance level set by the last 23 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on DISH:
DISH Network Corporation, together with its subsidiaries, provides pay-television services in the United States. The company operates through DISH and Wireless segments. DISH has a PE ratio of 39.7. Currently there are 6 analysts that rate DISH Network a buy, 4 analysts rate it a sell, and 4 rate it a hold.
The average volume for DISH Network has been 2.2 million shares per day over the past 30 days. DISH Network has a market cap of $15.9 billion and is part of the services sector and media industry. The stock has a beta of 0.85 and a short float of 1.8% with 2.16 days to cover. Shares are up 0.8% year-to-date as of the close of trading on Thursday.
rates DISH Network as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.4%. Since the same quarter one year prior, revenues slightly increased by 5.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 58.46% to $635.52 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 17.49%.
- Compared to its closing price of one year ago, DISH's share price has jumped by 31.23%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Media industry and the overall market, DISH NETWORK CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- DISH NETWORK CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, DISH NETWORK CORP increased its bottom line by earning $1.86 versus $1.50 in the prior year. For the next year, the market is expecting a contraction of 14.5% in earnings ($1.59 versus $1.86).
- You can view the full DISH Network Ratings Report.