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 post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Time Warner as such a stock due to the following factors:
- TWX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $413.3 million.
- TWX is up 3.3% today from today's close.
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More details on TWX:
Time Warner Inc. operates as a media and entertainment company in the United States and internationally. The company operates in three segments: Networks, Film and TV Entertainment, and Publishing. The Networks segment consists of Turner Broadcasting System, Inc. and Home Box Office, Inc. The stock currently has a dividend yield of 1.8%. TWX has a PE ratio of 16.0. Currently there are 15 analysts that rate Time Warner a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Time Warner has been 4.7 million shares per day over the past 30 days. Time Warner has a market cap of $57.1 billion and is part of the services sector and media industry. The stock has a beta of 1.36 and a short float of 1.5% with 2.17 days to cover. Shares are down 10.6% year-to-date as of the close of trading on Wednesday.
rates Time Warner as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth 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:
- TWX's revenue growth has slightly outpaced the industry average of 2.4%. Since the same quarter one year prior, revenues slightly increased by 0.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.64, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.09, which illustrates the ability to avoid short-term cash problems.
- The strong earnings growth this company has enjoyed -- up -- has apparently played a role in driving up its share price by a solid 27.19%. In addition, the rise in the general market has likely contributed to this stock's strong performance during this past year.Regarding the stock's future course, although almost any stock can fall in a broad market decline, TWX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- TIME WARNER INC has improved earnings per share by 32.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TIME WARNER INC increased its bottom line by earning $3.06 versus $2.72 in the prior year. This year, the market expects an improvement in earnings ($3.75 versus $3.06).
- 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 43.9% when compared to the same quarter one year prior, rising from $822.00 million to $1,183.00 million.
- You can view the full Time Warner Ratings Report.