NEW YORK (TheStreet) -- DirecTV (DTV - Get Report) stock is gaining by 0.29% to $92.81 on heavy trading volume on Wednesday, as its $48.5 billion merger with AT&T  (T) is expected to be approved by the Federal Communications Commission, The Wall Street Journal reports.

On Tuesday, FCC Chairman Thomas Wheeler, circulated an order to the four other commissioners reviewing the deal, recommending that they should vote to approve the merger.

AT&T's proposed acquisition of DirecTV, which was first announced in May 2014, would be the biggest media deal of the year if approved, The Journal stated. 

The transaction would increase the nation's residential fiber build by over 40%, and high-speed fiber connection would be available at 12.5 million customer locations, the FCC said, according to The Journal

"In order to prevent discrimination against online video competition, AT&T will not be permitted to exclude affiliated video services and content from data caps on its fixed broadband connections," Wheeler said in a statement.

DirecTV, a digital television entertainment company, engages in the direct-to-home (DTH) business in the U.S. and Latin America.

Separately, Separately, TheStreet Ratings team rates DIRECTV as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate DIRECTV (DTV) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and increase in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • DIRECTV has improved earnings per share by 32.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, DIRECTV increased its bottom line by earning $5.42 versus $5.19 in the prior year. This year, the market expects an improvement in earnings ($5.91 versus $5.42).
  • Net operating cash flow has slightly increased to $1,636.00 million or 2.89% when compared to the same quarter last year. Despite an increase in cash flow, DIRECTV's cash flow growth rate is still lower than the industry average growth rate of 14.47%.
  • 47.51% is the gross profit margin for DIRECTV which we consider to be strong. Regardless of DTV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 8.96% trails the industry average.
  • You can view the full analysis from the report here: DTV Ratings Report