Trade-Ideas LLC identified

Nexstar Broadcasting Group

(

NXST

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Nexstar Broadcasting Group as such a stock due to the following factors:

  • NXST has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.3 million.
  • NXST has traded 137,231 shares today.
  • NXST is trading at 2.23 times the normal volume for the stock at this time of day.
  • NXST is trading at a new low 5.01% 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 NXST:

TST Recommends

Nexstar Broadcasting Group, Inc. operates as a television broadcasting and digital media company in the United States. It focuses on the acquisition, development, and operation of television stations and interactive community Websites in medium-sized markets. The stock currently has a dividend yield of 2%. NXST has a PE ratio of 19. Currently there are 5 analysts that rate Nexstar Broadcasting Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Nexstar Broadcasting Group has been 478,600 shares per day over the past 30 days. Nexstar Broadcasting Group has a market cap of $1.5 billion and is part of the services sector and media industry. The stock has a beta of 2.15 and a short float of 13.1% with 5.84 days to cover. Shares are down 16.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Nexstar Broadcasting Group as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, growth in earnings per share, increase in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 42.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • NEXSTAR BROADCASTING GROUP has improved earnings per share by 12.5% 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. During the past fiscal year, NEXSTAR BROADCASTING GROUP turned its bottom line around by earning $2.01 versus -$0.08 in the prior year. This year, the market expects an improvement in earnings ($2.44 versus $2.01).
  • 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 12.2% when compared to the same quarter one year prior, going from $15.40 million to $17.28 million.
  • 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, NEXSTAR BROADCASTING GROUP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $60.06 million or 27.19% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 9.41%.

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