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 ( TWX) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Time Warner as such a stock due to the following factors:
- TWX has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 4.31 mentions/day.
- TWX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $446.8 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in TWX with the Ticky from Trade-Ideas. See the FREE profile for TWX NOW at Trade-Ideas More details on TWX: Time Warner Inc. operates as a media and entertainment company in the United States and internationally. The company operates in three segments: Networks, Film and TV Entertainment, and Publishing. The Networks segment consists of Turner Broadcasting System, Inc. and Home Box Office, Inc. The stock currently has a dividend yield of 1.9%. TWX has a PE ratio of 15.6. Currently there are 15 analysts that rate Time Warner a buy, no analysts rate it a sell, and 6 rate it a hold. The average volume for Time Warner has been 4.8 million shares per day over the past 30 days. Time Warner has a market cap of $55.7 billion and is part of the services sector and media industry. The stock has a beta of 1.45 and a short float of 1.2% with 1.56 days to cover. Shares are down 10.5% year-to-date as of the close of trading on Tuesday. 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 Time Warner as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- Powered by its strong earnings growth of 32.14% and other important driving factors, this stock has surged by 26.44% 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, TWX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- TIME WARNER INC has improved earnings per share by 32.1% 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. We feel that this trend should continue. During the past fiscal year, TIME WARNER INC increased its bottom line by earning $3.06 versus $2.72 in the prior year. This year, the market expects an improvement in earnings ($3.75 versus $3.06).
- 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 43.9% when compared to the same quarter one year prior, rising from $822.00 million to $1,183.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 0.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.64, 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 1.09, which illustrates the ability to avoid short-term cash problems.
- You can view the full Time Warner 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.