Tivo (TIVO) Is Strong On High Volume Today

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 Tivo ( TIVO) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Tivo as such a stock due to the following factors:

  • TIVO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.9 million.
  • TIVO has traded 270,065 shares today.
  • TIVO is trading at 3.92 times the normal volume for the stock at this time of day.
  • TIVO is trading at a new high 3.05% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in TIVO with the Ticky from Trade-Ideas. See the FREE profile for TIVO NOW at Trade-Ideas

More details on TIVO:

TiVo Inc. provides software, services, and technology that enable the distribution and management of video content through set-top boxes (STBs), and smartphones and tablets primarily in the United States. TIVO has a PE ratio of 47.1. Currently there are 9 analysts that rate Tivo a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Tivo has been 1.1 million shares per day over the past 30 days. Tivo has a market cap of $1.5 billion and is part of the services sector and media industry. The stock has a beta of 1.73 and a short float of 3.9% with 2.72 days to cover. Shares are down 0.1% year-to-date as of the close of trading on Wednesday.

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 Tivo as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures 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:
  • TIVO's revenue growth has slightly outpaced the industry average of 11.6%. Since the same quarter one year prior, revenues rose by 11.8%. 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.
  • The gross profit margin for TIVO INC is rather high; currently it is at 65.66%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, TIVO's net profit margin of 8.32% significantly trails the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.35, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.49 is very high and demonstrates very strong liquidity.
  • 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.
  • TIVO INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, TIVO INC turned its bottom line around by earning $1.98 versus -$0.09 in the prior year. For the next year, the market is expecting a contraction of 86.4% in earnings ($0.27 versus $1.98).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null

More from Markets

A Hungry Grizzly Bear Is Stalking the Stock Market

A Hungry Grizzly Bear Is Stalking the Stock Market

Tesla Has Lost 15% Since Musk's Take-Private Tweet

Tesla Has Lost 15% Since Musk's Take-Private Tweet

Why Most Americans Like a Volatile Stock Market: Study

Why Most Americans Like a Volatile Stock Market: Study

Should Retirees Invest in the Tech Sector?

Should Retirees Invest in the Tech Sector?

Here's How to Trade Walmart, Nordstrom, Macy's and J.C. Penney After Earnings

Here's How to Trade Walmart, Nordstrom, Macy's and J.C. Penney After Earnings