Trade-Ideas: Time Warner Cable (TWC) Is Today's Post-Market Leader Stock

Tickers in this article: TWC

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 or Stephanie Link.

Trade-Ideas LLC identified Time Warner Cable ( TWC) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Time Warner Cable as such a stock due to the following factors:

  • TWC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $321.8 million.
  • TWC is up 5.4% today from today's close.

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More details on TWC:

Time Warner Cable Inc., together with its subsidiaries, offers video, high-speed data, and voice services to residential and business service customers over its broadband cable systems in the United States. The stock currently has a dividend yield of 2.3%. TWC has a PE ratio of 16.2. Currently there are 12 analysts that rate Time Warner Cable a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Time Warner Cable has been 2.6 million shares per day over the past 30 days. Time Warner Cable has a market cap of $33.0 billion and is part of the services sector and media industry. The stock has a beta of 0.87 and a short float of 2% with 2.20 days to cover. Shares are up 16.6% year to date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Time Warner Cable as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • TWC's revenue growth has slightly outpaced the industry average of 1.1%. Since the same quarter one year prior, revenues slightly increased by 6.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 39.39% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TWC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 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, TIME WARNER CABLE INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has remained constant at $1,394.00 million with no significant change when compared to the same quarter last year. In addition, TIME WARNER CABLE INC has modestly surpassed the industry average cash flow growth rate of -0.12%.