Trade-Ideas LLC identified

Lions Gate Entertainment

(

LGF

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Lions Gate Entertainment as such a stock due to the following factors:

  • LGF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.7 million.
  • LGF is up 5.1% today from today's close.

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More details on LGF:

Lions Gate Entertainment Corp. engages in motion picture production and distribution, television programming and syndication, home entertainment, branded channel platforms, interactive ventures and games, and location-based entertainment in Canada, the United States, and internationally. The stock currently has a dividend yield of 1.8%. LGF has a PE ratio of 6. Currently there are 8 analysts that rate Lions Gate Entertainment a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Lions Gate Entertainment has been 2.3 million shares per day over the past 30 days. Lions Gate Entertainment has a market cap of $2.9 billion and is part of the services sector and media industry. The stock has a beta of 0.95 and a short float of 13.5% with 6.46 days to cover. Shares are down 37.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Lions Gate Entertainment as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 4.6%. Since the same quarter one year prior, revenues rose by 22.5%. 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.
  • 38.30% is the gross profit margin for LIONS GATE ENTERTAINMENT CP which we consider to be strong. Regardless of LGF's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LGF's net profit margin of 1.37% is significantly lower than the industry average.
  • LIONS GATE ENTERTAINMENT CP's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, LIONS GATE ENTERTAINMENT CP reported lower earnings of $0.31 versus $1.24 in the prior year. This year, the market expects an improvement in earnings ($0.53 versus $0.31).
  • Net operating cash flow has significantly decreased to $91.55 million or 64.72% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 42.53%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 50.00% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, LGF is still more expensive than most of the other companies in its industry.

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