Discovery Communications (DISCK) Is Today's Strong On High Volume Stock

Trade-Ideas LLC identified Discovery Communications ( DISCK) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Discovery Communications as such a stock due to the following factors:

  • DISCK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.6 million.
  • DISCK has traded 315,084 shares today.
  • DISCK is trading at 5.24 times the normal volume for the stock at this time of day.
  • DISCK is trading at a new high 3.03% 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 DISCK:

Discovery Communications, Inc. operates as a media company worldwide. It operates through U.S. Networks; International Networks; and Education and Other segments. DISCK has a PE ratio of 16. Currently there are no analysts that rate Discovery Communications a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Discovery Communications has been 1.9 million shares per day over the past 30 days. Discovery has a market cap of $10.0 billion and is part of the services sector and media industry. The stock has a beta of 1.50 and a short float of 3% with 1.54 days to cover. Shares are down 2.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Discovery Communications as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and generally higher debt management risk.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Media industry average. The net income increased by 5.2% when compared to the same quarter one year prior, going from $250.00 million to $263.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • DISCOVERY COMMUNICATIONS INC has improved earnings per share by 13.5% 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, DISCOVERY COMMUNICATIONS INC reported lower earnings of $1.58 versus $1.67 in the prior year. This year, the market expects an improvement in earnings ($5.72 versus $1.58).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Media industry and the overall market on the basis of return on equity, DISCOVERY COMMUNICATIONS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Net operating cash flow has declined marginally to $62.00 million or 1.58% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, DISCOVERY COMMUNICATIONS INC has marginally lower results.

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