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 Directv ( DTV) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Directv as such a stock due to the following factors:
- DTV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $586.0 million.
- DTV traded 4.5 million shares today in the pre-market hours as of 8:55 AM, representing 66.1% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in DTV with the Ticky from Trade-Ideas. See the FREE profile for DTV NOW at Trade-Ideas More details on DTV: DIRECTV provides digital television entertainment services in the United States and Latin America. The company acquires, promotes, sells, and distributes digital entertainment programming primarily through satellite to residential and commercial subscribers. DTV has a PE ratio of 16.9. Currently there are 10 analysts that rate Directv a buy, 1 analyst rates it a sell, and 8 rate it a hold. The average volume for Directv has been 4.8 million shares per day over the past 30 days. Directv has a market cap of $43.0 billion and is part of the services sector and media industry. The stock has a beta of 1.14 and a short float of 3.3% with 2.42 days to cover. Shares are up 23.3% year-to-date as of the close of trading on Thursday. 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 Directv as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- Compared to its closing price of one year ago, DTV's share price has jumped by 30.61%, 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, DTV should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- DTV's revenue growth trails the industry average of 14.9%. Since the same quarter one year prior, revenues slightly increased by 3.6%. 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.
- DIRECTV's earnings per share declined by 9.2% 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, DIRECTV increased its bottom line by earning $5.19 versus $4.61 in the prior year. This year, the market expects an improvement in earnings ($5.90 versus $5.19).
- Net operating cash flow has slightly increased to $1,590.00 million or 3.51% when compared to the same quarter last year. Despite an increase in cash flow, DIRECTV's average is still marginally south of the industry average growth rate of 5.70%.
- 48.68% is the gross profit margin for DIRECTV which we consider to be strong. Regardless of DTV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.14% trails the industry average.
- You can view the full Directv 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.