Trade-Ideas: CBS (CBS) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified CBS ( CBS) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified CBS as such a stock due to the following factors:
- CBS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $186.0 million.
- CBS is up 2.4% today from today's close.
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More details on CBS: CBS Corporation operates as a mass media company worldwide. The company operates through four segments: Entertainment, Cable Networks, Publishing, and Local Broadcasting. The stock currently has a dividend yield of 1.1%. CBS has a PE ratio of 19. Currently there are 17 analysts that rate CBS a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for CBS has been 4.5 million shares per day over the past 30 days. CBS has a market cap of $25.7 billion and is part of the services sector and media industry. The stock has a beta of 1.82 and a short float of 3.7% with 4.73 days to cover. Shares are up 19.8% year-to-date as of the close of trading on Monday.
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Analysis:
rates CBS as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and expanding profit margins. We feel its 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 6.2%. 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.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Media industry and the overall market, CBS CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- CBS CORP's earnings per share declined by 31.2% 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, CBS CORP increased its bottom line by earning $2.86 versus $2.39 in the prior year. This year, the market expects an improvement in earnings ($4.00 versus $2.86).
- 37.77% is the gross profit margin for CBS CORP which we consider to be strong. Regardless of CBS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.67% trails the industry average.
- The share price of CBS CORP has not done very well: it is down 8.98% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.
- You can view the full CBS Ratings Report.
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