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 pre-market mover with heavy volume 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 $326.1 million.
- TWC traded 405,967 shares today in the pre-market hours as of 7:28 AM, representing 18.5% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in TWC with the Ticky from Trade-Ideas. See the FREE profile for TWC NOW at Trade-Ideas 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 2.2%. TWC has a PE ratio of 20.5. Currently there are 9 analysts that rate Time Warner Cable a buy, no analysts rate it a sell, and 13 rate it a hold. The average volume for Time Warner Cable has been 3.0 million shares per day over the past 30 days. Time Warner Cable has a market cap of $38.3 billion and is part of the services sector and media industry. The stock has a beta of 0.85 and a short float of 1.9% with 2.48 days to cover. Shares are down 0.4% 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 Cable as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 1.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has increased to $1,599.00 million or 13.40% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.38%.
- The gross profit margin for TIME WARNER CABLE INC is rather high; currently it is at 53.77%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.68% trails the industry average.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 53.99% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- TIME WARNER CABLE INC has improved earnings per share by 12.5% in the most recent quarter compared to 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, TIME WARNER CABLE INC reported lower earnings of $6.71 versus $6.91 in the prior year. This year, the market expects an improvement in earnings ($7.73 versus $6.71).
- You can view the full Time Warner Cable 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.