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 Grupo Televisa S.A.B as such a stock due to the following factors:
- TV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $50.4 million.
- TV has traded 3.2 million shares today.
- TV traded in a range 214.2% of the normal price range with a price range of $1.62.
- TV traded below its daily resistance level (quality: 1 day, meaning that the stock is crossing a resistance level set by the last 1 calendar day. 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 TV:
Grupo Televisa, S.A.B. operates as a media company. The stock currently has a dividend yield of 0.4%. TV has a PE ratio of 21.2. Currently there is 1 analyst that rates Grupo Televisa S.A.B a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for Grupo Televisa S.A.B has been 1.7 million shares per day over the past 30 days. Grupo Televisa S.A.B has a market cap of $16.3 billion and is part of the services sector and media industry. Shares are up 6.9% year to date as of the close of trading on Thursday.
rates Grupo Televisa S.A.B as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, expanding profit margins and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- TV's revenue growth has slightly outpaced the industry average of 0.3%. Since the same quarter one year prior, revenues slightly increased by 9.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- 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. In comparison to the other companies in the Media industry and the overall market, GRUPO TELEVISA SAB's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- The gross profit margin for GRUPO TELEVISA SAB is rather high; currently it is at 60.14%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.26% is above that of the industry average.
- 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 37.5% when compared to the same quarter one year prior, rising from $98.86 million to $135.98 million.
- You can view the full Grupo Televisa S.A.B Ratings Report.