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 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 more that 20x the normal benchmarked social activity for this time of the day compared to its average of 1.20 mentions/day.
- TWC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $221.7 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, offers video, high-speed data, and voice services to residential and business service customers over its broadband cable systems in the United States. The stock currently has a dividend yield of 2.2%. TWC has a PE ratio of 18.5. Currently there are 14 analysts that rate Time Warner Cable a buy, no analysts rate it a sell, and 9 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 $33.8 billion and is part of the services sector and media industry. The stock has a beta of 0.81 and a short float of 2.1% with 3.56 days to cover. Shares are up 24.4% year to date as of the close of trading on Thursday.
rates Time Warner Cable as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- TWC's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 2.9%. 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 gross profit margin for TIME WARNER CABLE INC is rather high; currently it is at 53.53%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.64% is above that of the industry average.
- Net operating cash flow has slightly increased to $1,209.00 million or 1.17% when compared to the same quarter last year. Despite an increase in cash flow, TIME WARNER CABLE INC's cash flow growth rate is still lower than the industry average growth rate of 13.65%.
- TWC's share price has surged by 35.31% over the past year, reflecting the market's general trend, despite their weak earnings growth during the last quarter. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TWC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- You can view the full Time Warner Cable Ratings Report.