Watch Out: Barbarians At The Gate For Scripps Networks Interactive (SNI)
Trade-Ideas LLC identified Scripps Networks Interactive ( SNI) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Scripps Networks Interactive as such a stock due to the following factors:
- SNI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $67.4 million.
- SNI has traded 380,725 shares today.
- SNI traded in a range 210.9% of the normal price range with a price range of $3.09.
- SNI traded above its daily resistance level (quality: 12 days, meaning that the stock is crossing a resistance level set by the last 12 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on SNI: Scripps Networks Interactive, Inc. develops lifestyle-oriented content for linear and interactive video platforms in the United States, the United Kingdom and other European markets, the Middle East and Africa, the Asia-Pacific, and Latin America. The stock currently has a dividend yield of 1.6%. SNI has a PE ratio of 13. Currently there are 4 analysts that rate Scripps Networks Interactive a buy, no analysts rate it a sell, and 9 rate it a hold. The average volume for Scripps Networks Interactive has been 1.3 million shares per day over the past 30 days. Scripps Networks Interactive has a market cap of $7.8 billion and is part of the services sector and media industry. The stock has a beta of 1.41 and a short float of 15.8% with 12.39 days to cover. Shares are up 10.6% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Scripps Networks Interactive as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, increase in net income and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.4%. Since the same quarter one year prior, revenues rose by 27.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SCRIPPS NETWORKS INTERACTIVE has improved earnings per share by 32.3% 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, SCRIPPS NETWORKS INTERACTIVE increased its bottom line by earning $4.66 versus $3.83 in the prior year. This year, the market expects an improvement in earnings ($5.04 versus $4.66).
- 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 24.9% when compared to the same quarter one year prior, going from $131.85 million to $164.71 million.
- 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. Compared to other companies in the Media industry and the overall market, SCRIPPS NETWORKS INTERACTIVE's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for SCRIPPS NETWORKS INTERACTIVE is rather high; currently it is at 62.18%. Regardless of SNI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SNI's net profit margin of 19.33% compares favorably to the industry average.
- You can view the full Scripps Networks Interactive Ratings Report.
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