Trade-Ideas: Grupo Televisa S.A.B (TV) Is Today's

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 Grupo Televisa S.A.B ( TV) 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 Grupo Televisa S.A.B as such a stock due to the following factors:

  • TV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $54.6 million.
  • TV has traded 1.4 million shares today.
  • TV traded in a range 210.7% of the normal price range with a price range of $1.45.
  • TV traded above its daily resistance level (quality: 15 days, meaning that the stock is crossing a resistance level set by the last 15 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 TV:

Grupo Televisa, S.A.B. operates as a media company. The stock currently has a dividend yield of 0.5%. TV has a PE ratio of 21.2. Currently there is 1 analyst that rates Grupo Televisa S.A.B a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Grupo Televisa S.A.B has been 1.9 million shares per day over the past 30 days. Grupo Televisa S.A.B has a market cap of $14.7 billion and is part of the services sector and media industry. Shares are down 3.3% year to date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Grupo Televisa S.A.B as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, notable return on equity, expanding profit margins 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:
  • The revenue growth came in higher than the industry average of 2.3%. Since the same quarter one year prior, revenues slightly increased by 9.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • 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, GRUPO TELEVISA SAB's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for GRUPO TELEVISA SAB is rather high; currently it is at 60.14%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.26% is above that of the industry average.
  • 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 37.5% when compared to the same quarter one year prior, rising from $98.86 million to $135.98 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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Strong On High Relative Volume: Grupo Televisa SAB (TV)