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 Gray Television ( GTN) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Gray Television as such a stock due to the following factors:

  • GTN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.6 million.
  • GTN has traded 132,138 shares today.
  • GTN is down 3.1% today.
  • GTN was up 10.1% yesterday.

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More details on GTN:

Gray Television, Inc. operates as a television broadcast company in the United States. The stock currently has a dividend yield of 26.7%. GTN has a PE ratio of 64.3. Currently there are no analysts that rate Gray Television a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Gray Television has been 861,500 shares per day over the past 30 days. Gray Television has a market cap of $605.0 million and is part of the services sector and media industry. The stock has a beta of 3.13 and a short float of 5% with 2.08 days to cover. Shares are up 426.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Gray Television as a hold. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • GTN, with its decline in revenue, underperformed when compared the industry average of 3.0%. Since the same quarter one year prior, revenues fell by 21.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Compared to its closing price of one year ago, GTN's share price has jumped by 459.42%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • GRAY TELEVISION INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, GRAY TELEVISION INC increased its bottom line by earning $0.42 versus $0.02 in the prior year. For the next year, the market is expecting a contraction of 17.9% in earnings ($0.35 versus $0.42).
  • Net operating cash flow has decreased to $25.67 million or 43.24% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 55.4% when compared to the same quarter one year ago, falling from $15.87 million to $7.07 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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