Gray Television (GTN) Is Today's Strong On High Volume 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 Gray Television ( GTN) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Gray Television as such a stock due to the following factors:

  • GTN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.7 million.
  • GTN has traded 98,677 shares today.
  • GTN is trading at 3.98 times the normal volume for the stock at this time of day.
  • GTN is trading at a new high 3.06% 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.

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More details on GTN:

Gray Television, Inc. operates as a television broadcast company in the United States. GTN has a PE ratio of 29.4. Currently there are 2 analysts that rate Gray Television a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Gray Television has been 412,200 shares per day over the past 30 days. Gray Television has a market cap of $587.3 million and is part of the services sector and media industry. The stock has a beta of 4.09 and a short float of 9% with 11.69 days to cover. Shares are down 26.3% year-to-date as of the close of trading on Friday.

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 Gray Television as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk.

Highlights from the ratings report include:
  • GTN's very impressive revenue growth greatly exceeded the industry average of 8.6%. Since the same quarter one year prior, revenues leaped by 62.2%. Growth in the company's revenue appears to have helped boost 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 97.1% when compared to the same quarter one year prior, rising from $7.07 million to $13.94 million.
  • GRAY TELEVISION INC reported significant earnings per share improvement 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, GRAY TELEVISION INC reported lower earnings of $0.32 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($0.86 versus $0.32).
  • GTN has underperformed the S&P 500 Index, declining 19.98% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • Although GTN's debt-to-equity ratio of 6.71 is very high, it is currently less than that of the industry average. Regardless of the company's weak debt-to-equity ratio, GTN has managed to keep a strong quick ratio of 1.55, which demonstrates the ability to cover short-term cash needs.

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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