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 Lions Gate Entertainment Corporation ( LGF) 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 Lions Gate Entertainment Corporation as such a stock due to the following factors:
- LGF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $58.0 million.
- LGF has traded 315,658 shares today.
- LGF traded in a range 231.2% of the normal price range with a price range of $2.69.
- LGF traded below its daily resistance level (quality: 125 days, meaning that the stock is crossing a resistance level set by the last 125 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in LGF with the Ticky from Trade-Ideas. See the FREE profile for LGF NOW at Trade-Ideas More details on LGF: Lions Gate Entertainment Corp., an entertainment company, engages in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution, new channel platforms, and international distribution and sales activities. LGF has a PE ratio of 16.6. Currently there are 8 analysts that rate Lions Gate Entertainment Corporation a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for Lions Gate Entertainment Corporation has been 1.4 million shares per day over the past 30 days. Lions Gate Entertainment has a market cap of $4.6 billion and is part of the services sector and media industry. The stock has a beta of 0.82 and a short float of 10.6% with 4.53 days to cover. Shares are up 106.2% 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 Lions Gate Entertainment Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. 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:
- The revenue growth came in higher than the industry average of 6.4%. Since the same quarter one year prior, revenues rose by 20.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 130.30% and other important driving factors, this stock has surged by 107.31% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LGF should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- LIONS GATE ENTERTAINMENT CP 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. During the past fiscal year, LIONS GATE ENTERTAINMENT CP turned its bottom line around by earning $1.57 versus -$0.30 in the prior year.
- 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 130.8% when compared to the same quarter one year prior, rising from -$44.20 million to $13.62 million.
- 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, LIONS GATE ENTERTAINMENT CP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full Lions Gate Entertainment Corporation 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.