Trade-Ideas LLC identified

CBS

(

CBS

) as a weak on high relative volume 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 $218.6 million.
  • CBS has traded 639,273 shares today.
  • CBS is trading at 2.65 times the normal volume for the stock at this time of day.
  • CBS is trading at a new low 3.02% 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 CBS:

CBS Corporation operates as a mass media company worldwide. It operates through four segments: Entertainment, Cable Networks, Publishing, and Local Broadcasting. The stock currently has a dividend yield of 1.4%. CBS has a PE ratio of 18. Currently there are 15 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 5.4 million shares per day over the past 30 days. CBS has a market cap of $18.9 billion and is part of the services sector and media industry. The stock has a beta of 1.95 and a short float of 3.3% with 2.75 days to cover. Shares are down 24.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CBS as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 1.0%. 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.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, CBS CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 262.60% to $446.00 million when compared to the same quarter last year. In addition, CBS CORP has also vastly surpassed the industry average cash flow growth rate of 7.40%.
  • 40.76% 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 10.31% trails the industry average.

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