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 Twenty-First Century Fox ( FOXA) 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 Twenty-First Century Fox as such a stock due to the following factors:
- FOXA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $336.3 million.
- FOXA has traded 4.9 million shares today.
- FOXA traded in a range 230.3% of the normal price range with a price range of $1.27.
- FOXA traded above its daily resistance level (quality: 531 days, meaning that the stock is crossing a resistance level set by the last 531 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in FOXA with the Ticky from Trade-Ideas. See the FREE profile for FOXA NOW at Trade-Ideas More details on FOXA: Twenty-First Century Fox, Inc. operates as a diversified media and entertainment company worldwide. The stock currently has a dividend yield of 0.8%. FOXA has a PE ratio of 10.8. Currently there are 18 analysts that rate Twenty-First Century Fox a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for Twenty-First Century Fox has been 11.0 million shares per day over the past 30 days. Twenty-First Century Fox has a market cap of $49.1 billion and is part of the services sector and media industry. The stock has a beta of 0.93 and a short float of 3.6% with 5.49 days to cover. Shares are up 24.3% year to date as of the close of trading on Tuesday. 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 Twenty-First Century Fox as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- Powered by its strong earnings growth of 165.62% and other important driving factors, this stock has surged by 35.66% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- TWENTY-FIRST CENTURY FOX INC 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, TWENTY-FIRST CENTURY FOX INC increased its bottom line by earning $2.90 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($3.11 versus $2.90).
- 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 76.1% when compared to the same quarter one year prior, rising from -$1,553.00 million to -$371.00 million.
- The debt-to-equity ratio is somewhat low, currently at 0.97, 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 1.44, which illustrates the ability to avoid short-term cash problems.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Media industry and the overall market, TWENTY-FIRST CENTURY FOX INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full Twenty-First Century Fox Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.