Trade-Ideas: Grupo Televisa SAB (TV) Is Today's

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 $36.9 million.
  • TV has traded 1.7 million shares today.
  • TV traded in a range 258.2% of the normal price range with a price range of $1.16.
  • TV traded above its daily resistance level (quality: 143 days, meaning that the stock is crossing a resistance level set by the last 143 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 3 analysts that rate Grupo Televisa SAB a buy, 1 analyst rates it a sell, and 3 rate it a hold. The average volume for Grupo Televisa SAB has been 1.6 million shares per day over the past 30 days. Grupo Televisa SAB has a market cap of $15.6 billion and is part of the services sector and media industry. Shares are down 1.4% year-to-date as of the close of trading on Thursday. 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 revenue growth, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk. Highlights from the ratings report include:
  • TV's revenue growth has slightly outpaced the industry average of 8.0%. Since the same quarter one year prior, revenues rose by 10.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for GRUPO TELEVISA SAB is rather high; currently it is at 59.27%. 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 5.90% trails 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.
  • Net operating cash flow has significantly decreased to $30.41 million or 95.75% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 45.6% when compared to the same quarter one year ago, falling from $150.52 million to $81.84 million.

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