Trade-Ideas: Time Warner Cable (TWC) Is Today's Unusual Social Activity Stock - TheStreet

Trade-Ideas LLC identified

Time Warner Cable

(

TWC

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Time Warner Cable as such a stock due to the following factors:

  • TWC has 15x the normal benchmarked social activity for this time of the day compared to its average of 4.10 mentions/day.
  • TWC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $273.1 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on TWC:

Time Warner Cable Inc., together with its subsidiaries, provides video, high-speed data, and voice services in the United States. It operates in three segments: Residential Services, Business Services, and Other Operations. The stock currently has a dividend yield of 1.6%. TWC has a PE ratio of 27. Currently there are 7 analysts that rate Time Warner Cable a buy, 1 analyst rates it a sell, and 10 rate it a hold.

The average volume for Time Warner Cable has been 1.8 million shares per day over the past 30 days. Time Warner Cable has a market cap of $51.9 billion and is part of the services sector and media industry. The stock has a beta of 0.88 and a short float of 3.1% with 6.01 days to cover. Shares are up 21.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Time Warner Cable as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations and notable return on equity. 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:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 3.5%. 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.
  • Compared to its closing price of one year ago, TWC's share price has jumped by 34.43%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Net operating cash flow has remained constant at $1,698.00 million with no significant change when compared to the same quarter last year. This quarter, TIME WARNER CABLE INC's cash flow growth rate has remained relatively unchanged and is slightly below the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Media industry and the overall market, TIME WARNER CABLE INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • TIME WARNER CABLE INC's earnings per share declined by 8.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, TIME WARNER CABLE INC increased its bottom line by earning $7.17 versus $6.71 in the prior year. For the next year, the market is expecting a contraction of 8.3% in earnings ($6.58 versus $7.17).

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