Watch Out: Barbarians At The Gate For Grupo Televisa SAB (TV)

Trade-Ideas LLC identified Grupo Televisa SAB ( TV) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) 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 $44.0 million.
  • TV has traded 1.5 million shares today.
  • TV traded in a range 231.2% of the normal price range with a price range of $1.73.
  • TV traded above its daily resistance level (quality: 100 days, meaning that the stock is crossing a resistance level set by the last 100 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in TV with the Ticky from Trade-Ideas. See the FREE profile for TV NOW at Trade-Ideas

More details on TV:

Grupo Televisa, S.A.B. operates as a media company in the Spanish-speaking world. The company operates through four segments: Content, Sky, Telecommunications, and Other Businesses. The stock currently has a dividend yield of 0.4%. Currently there are 4 analysts that rate Grupo Televisa SAB a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Grupo Televisa SAB has been 1.7 million shares per day over the past 30 days. Grupo Televisa SAB has a market cap of $15.3 billion and is part of the services sector and media industry. Shares are down 1.7% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Grupo Televisa SAB as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • 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 1829.0% when compared to the same quarter one year prior, rising from -$21.67 million to $374.70 million.
  • The gross profit margin for GRUPO TELEVISA SAB is rather high; currently it is at 62.35%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 33.12% significantly outperformed against the industry average.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Media industry and the overall market on the basis of return on equity, GRUPO TELEVISA SAB has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • TV has underperformed the S&P 500 Index, declining 20.97% 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.
  • Net operating cash flow has decreased to $233.11 million or 35.70% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Dow Set to Snap 8-Day Losing Streak as Stocks Recover, But Trade War Lingers

Dow Set to Snap 8-Day Losing Streak as Stocks Recover, But Trade War Lingers

Dow Sinks for Eighth Straight Session; Intel's CEO Departs -- ICYMI

Dow Sinks for Eighth Straight Session; Intel's CEO Departs -- ICYMI

Dow Logs Eighth Straight Drop as Stocks Slump

Dow Logs Eighth Straight Drop as Stocks Slump

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

U.S. Banks Pass Fed 'Stress Test' With Room for Dividends, Buybacks

U.S. Banks Pass Fed 'Stress Test' With Room for Dividends, Buybacks