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 "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Nielsen as such a stock due to the following factors:
- NLSN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.4 million.
- NLSN has traded 154,651 shares today.
- NLSN traded in a range 201.3% of the normal price range with a price range of $1.23.
- NLSN traded below its daily resistance level (quality: 35 days, meaning that the stock is crossing a resistance level set by the last 35 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on NLSN:
Nielsen N.V. provides media and marketing information, analytics, and industry expertise about what consumers watch and listen. The company operates in two segments, Buy and Watch. The stock currently has a dividend yield of 2.1%. NLSN has a PE ratio of 39.2. Currently there are 10 analysts that rate Nielsen a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for Nielsen has been 1.7 million shares per day over the past 30 days. Nielsen has a market cap of $18.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.02 and a short float of 1.8% with 6.08 days to cover. Shares are up 6.3% year-to-date as of the close of trading on Monday.
rates Nielsen as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, good cash flow from operations and expanding profit margins. We feel these 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:
- NIELSEN HOLDINGS NV reported significant earnings per share improvement 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, NIELSEN HOLDINGS NV increased its bottom line by earning $1.13 versus $0.67 in the prior year. This year, the market expects an improvement in earnings ($2.51 versus $1.13).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Professional Services industry. The net income increased by 65.7% when compared to the same quarter one year prior, rising from $35.00 million to $58.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 17.8%. Since the same quarter one year prior, revenues rose by 12.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has significantly increased by 66.66% to $90.00 million when compared to the same quarter last year. In addition, NIELSEN HOLDINGS NV has also vastly surpassed the industry average cash flow growth rate of 12.20%.
- The gross profit margin for NIELSEN HOLDINGS NV is rather high; currently it is at 56.88%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 3.89% trails the industry average.
- You can view the full Nielsen Ratings Report.