Trade-Ideas: CBS (CBS) Is Today's Post-Market Leader 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 CBS ( CBS) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified CBS as such a stock due to the following factors:

  • CBS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $314.8 million.
  • CBS is up 2.8% today from today's close.

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More details on CBS:

CBS Corporation operates as a mass media company in the United States and internationally. It operates through Entertainment, Cable Networks, Publishing, Local Broadcasting segments. The stock currently has a dividend yield of 1.1%. CBS has a PE ratio of 17.6. Currently there are 16 analysts that rate CBS a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for CBS has been 7.1 million shares per day over the past 30 days. CBS has a market cap of $26.6 billion and is part of the services sector and media industry. The stock has a beta of 1.76 and a short float of 3.1% with 2.77 days to cover. Shares are down 18.4% 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 CBS as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures 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:
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, CBS CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • CBS CORP's earnings per share improvement from the most recent quarter was slightly positive. 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, CBS CORP increased its bottom line by earning $2.92 versus $2.48 in the prior year. This year, the market expects an improvement in earnings ($3.11 versus $2.92).
  • The debt-to-equity ratio is somewhat low, currently at 0.69, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.98 is somewhat weak and could be cause for future problems.
  • 43.60% is the gross profit margin for CBS CORP which we consider to be strong. Regardless of CBS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CBS's net profit margin of 13.77% compares favorably to the industry average.

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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