Grupo Televisa SAB (TV) Showing Signs Of Being Strong And Under The Radar

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.

Trade-Ideas LLC identified Grupo Televisa SAB ( TV) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Grupo Televisa SAB as such a stock due to the following factors:

  • TV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.1 million.
  • TV is making at least a new 3-day high.
  • TV is mentioned 1.29 times per day on StockTwits.
  • TV has not yet been mentioned on StockTwits today.
  • TV is currently in the upper 20% of its 1-year range.
  • TV is in the upper 35% of its 20-day range.
  • TV is in the upper 45% of its 5-day range.
  • TV is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on TV:

Grupo Televisa, S.A.B. operates as a media company. It operates through five segments: Content, Publishing, Sky, Telecommunications, and Other Businesses. Currently there are 5 analysts that rate Grupo Televisa SAB a buy, 2 analysts rate it a sell, and 1 rates it a hold.

The average volume for Grupo Televisa SAB has been 1.3 million shares per day over the past 30 days. Grupo Televisa SAB has a market cap of $20.5 billion and is part of the services sector and media industry. Shares are up 4.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Grupo Televisa SAB as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. 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 gross profit margin for GRUPO TELEVISA SAB is rather high; currently it is at 66.64%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 12.00% trails the industry average.
  • GRUPO TELEVISA SAB's earnings per share declined by 16.2% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, GRUPO TELEVISA SAB reported lower earnings of $0.73 versus $1.15 in the prior year. This year, the market expects an improvement in earnings ($1.25 versus $0.73).
  • The revenue fell significantly faster than the industry average of 7.3%. Since the same quarter one year prior, revenues fell by 24.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Even though the current debt-to-equity ratio is 1.12, it is still below the industry average, suggesting that this level of debt is acceptable within the Media industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.34 is sturdy.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

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