Water-Logged And Getting Wetter: Grupo Televisa S.A.B (TV)

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 "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 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 $49.8 million.
  • TV has traded 305,170 shares today.
  • TV traded in a range 225.2% of the normal price range with a price range of $1.65.
  • TV traded below its daily resistance level (quality: 4 days, meaning that the stock is crossing a resistance level set by the last 4 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.

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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 0.8%. 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 2 rate it a hold.

The average volume for Grupo Televisa S.A.B has been 1.6 million shares per day over the past 30 days. Grupo Televisa S.A.B has a market cap of $17.0 billion and is part of the services sector and media industry. Shares are up 11.6% year-to-date as of the close of trading on Monday.

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 largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and increase in stock price during the past year. 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 debt-to-equity ratio is somewhat low, currently at 1.00, 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 1.29, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for GRUPO TELEVISA SAB is rather high; currently it is at 60.39%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.82% is above that of the industry average.
  • Net operating cash flow has slightly increased to $400.09 million or 2.11% when compared to the same quarter last year. Despite an increase in cash flow, GRUPO TELEVISA SAB's cash flow growth rate is still lower than the industry average growth rate of 13.61%.
  • TV, with its decline in revenue, slightly underperformed the industry average of 3.1%. Since the same quarter one year prior, revenues slightly dropped by 3.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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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