Trade-Ideas: Time Warner Cable (TWC) Is Today's Post-Market Leader Stock

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 Time Warner Cable ( TWC) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Time Warner Cable as such a stock due to the following factors:

  • TWC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $198.3 million.
  • TWC is up 4% today from today's close.

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More details on TWC:

Time Warner Cable Inc., together with its subsidiaries, offers video, high-speed data, and voice services to residential and business service customers over its broadband cable systems in the United States. The stock currently has a dividend yield of 1.9%. TWC has a PE ratio of 20.9. Currently there are 12 analysts that rate Time Warner Cable a buy, no analysts rate it a sell, and 12 rate it a hold.

The average volume for Time Warner Cable has been 2.6 million shares per day over the past 30 days. Time Warner Cable has a market cap of $38.2 billion and is part of the services sector and media industry. The stock has a beta of 0.87 and a short float of 2% with 4.15 days to cover. Shares are down 1.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Time Warner Cable as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, solid stock price performance, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • TWC's revenue growth has slightly outpaced the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 2.9%. 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, TWC's share price has jumped by 39.73%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TWC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The gross profit margin for TIME WARNER CABLE INC is rather high; currently it is at 53.53%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.64% is above that of the industry average.
  • Net operating cash flow has slightly increased to $1,209.00 million or 1.17% when compared to the same quarter last year. Despite an increase in cash flow, TIME WARNER CABLE INC's cash flow growth rate is still lower than the industry average growth rate of 13.61%.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Media industry and the overall market, TIME WARNER CABLE INC's return on equity significantly exceeds that of both the industry average and the S&P 500.

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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