Eyes On Twenty-First Century Fox (FOX): Highlighted Storm The Castle 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 Twenty-First Century Fox ( FOX) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Twenty-First Century Fox as such a stock due to the following factors:

  • FOX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $137.5 million.
  • FOX has traded 1.7 million shares today.
  • FOX is trading at 4.97 times the normal volume for the stock at this time of day.
  • FOX crossed above its 200-day simple moving average.

'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. 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 on. 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.

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More details on FOX:

Twenty-First Century Fox, Inc. operates as a diversified media and entertainment company worldwide. It operates through Cable Network Programming, Television, Filmed Entertainment, and Direct Broadcast Satellite Television segments. The stock currently has a dividend yield of 0.8%. FOX has a PE ratio of 19.8. Currently there are 2 analysts that rate Twenty-First Century Fox a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Twenty-First Century Fox has been 3.2 million shares per day over the past 30 days. Twenty-First Century Fox has a market cap of $26.4 billion and is part of the services sector and media industry. The stock has a beta of 1.11 and a short float of 0.2% with 0.29 days to cover. Shares are down 7.5% 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 Twenty-First Century Fox as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, reasonable valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • FOX's revenue growth has slightly outpaced the industry average of 8.3%. Since the same quarter one year prior, revenues rose by 16.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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 369.3% when compared to the same quarter one year prior, rising from -$371.00 million to $999.00 million.
  • Net operating cash flow has significantly increased by 212.91% to $1,346.00 million when compared to the same quarter last year. In addition, TWENTY-FIRST CENTURY FOX INC has also vastly surpassed the industry average cash flow growth rate of 17.58%.
  • TWENTY-FIRST CENTURY FOX INC's earnings per share improvement from the most recent quarter was slightly positive. 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, TWENTY-FIRST CENTURY FOX INC reported lower earnings of $1.66 versus $2.91 in the prior year. This year, the market expects an improvement in earnings ($3.44 versus $1.66).

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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