Trade-Ideas LLC identified

News

(

NWS

) as a weak 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 $11.2 million.
  • NWS has traded 79,467 shares today.
  • NWS is trading at 2.04 times the normal volume for the stock at this time of day.
  • NWS is trading at a new low 3.05% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 content to consumers and businesses worldwide. The stock currently has a dividend yield of 0.8%. 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 1.1 million shares per day over the past 30 days. News has a market cap of $2.7 billion and is part of the services sector and media industry. The stock has a beta of 1.83 and a short float of 5.1% with 5.79 days to cover. Shares are down 6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates News as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • 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 169.2% when compared to the same quarter one year prior, rising from $65.00 million to $175.00 million.
  • NWS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, NWS has a quick ratio of 1.50, which demonstrates the ability of the company to cover short-term liquidity needs.
  • NEWS CORP has improved earnings per share by 46.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NEWS CORP swung to a loss, reporting -$0.22 versus $0.41 in the prior year. This year, the market expects an improvement in earnings ($0.55 versus -$0.22).
  • Net operating cash flow has decreased to $106.00 million or 42.07% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. 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.

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