Today's Unusual Social Activity Stock: Twenty-First Century Fox (FOXA)

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 an unusual social activity 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 13x the normal benchmarked social activity for this time of the day compared to its average of 0.81 mentions/day.
  • FOXA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $280.7 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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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 14.5. Currently there are 16 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 9.9 million shares per day over the past 30 days. Twenty-First Century Fox has a market cap of $49.2 billion and is part of the services sector and media industry. The stock has a beta of 0.92 and a short float of 3.3% with 5.77 days to cover. Shares are up 29.8% year-to-date as of the close of trading on Monday.

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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 revenue growth, solid stock price performance, notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 17.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, FOXA's share price has jumped by 35.01%, exceeding the performance of the broader market during that same time frame. 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.
  • 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.
  • TWENTY-FIRST CENTURY FOX 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TWENTY-FIRST CENTURY FOX INC increased its bottom line by earning $2.91 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($3.04 versus $2.91).
  • 37.02% is the gross profit margin for TWENTY-FIRST CENTURY FOX INC which we consider to be strong. Regardless of FOXA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FOXA's net profit margin of 17.77% compares favorably to the industry average.

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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