Stocks Rallying on Glossy Profitability Ratio: Time Warner Inc. (NYSE:TWX)

In active leading trade session, Time Warner Inc. (NYSE:TWX) inching down -0.28% to trade at $98.46. The firm receives analyst recommendation of 2.30 on scale of 1-5 with week’s performance of 0.01%.

Experts’ Critical Views

Fundamentalist can give brighter side of a picture but an analyst can glow the darker parts stored in any investment. Let us view how analysts have ranked TWX in recent few months. In ratings table the TWX given BUY ratings by 14 analysts in current phase. The 2 analysts have SELL recommendation for current month on TWX. While, 18 analysts gave ratings for HOLD in current. As per remarks given by WSJ, overall consensus pool recommends it as Overweight security.

The stock was assessed in terms of profitability as current quarter EPS estimate trends showed $1.46 at current month while compared with $1.46 in a month ago. The stock next year first quarter current estimate trend for EPS was for $1.31 and on annual basis FY 2016 estimate trends at current was for $5.94 as compared to one month ago of $5.94, and for next year per share earnings estimates have $6.54.

Technical Positioning

To find out the technical position of Time Warner Inc. (NYSE:TWX), it holds price to book ratio of 3.12 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 15, and price to earnings ratio calculated as 19.87. The price to earnings growth ration calculated as 1.82. TWX is presenting price to cash flow of 49.46 and free cash flow concluded as 25.67.

EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 7.80%, and looking further price to next year’s EPS is 10.33%. While take a short look on price to sales ratio, that was 2.60 and price to earning ration of 19.87 attracting passive investors.

Earnings Technical Analysis

Time Warner Inc. (NYSE:TWX) has price to earnings growth of 1.82, which is a valuation metric for determining relative trade-off among price of a stock. For trailing twelve months, TWX attains gross profit margin of 44.40% and operating margin stands at 25.70% that is showing consistency of trends in firm’s earnings. While to figure out more clear vision, firm’s returns on investment calculated as 12.90%; it gives answer about efficiency of different investments in different securities. The returns on assets of Time Warner Inc. (NYSE:TWX) also presenting perceptible condition of profitability, it has ROA of 6%, the very positive ratio starts from >+15% and very negative hits to <-15%.

The firm has noticeable volatility credentials; price volatility of stock was 0.51% for a week and 0.66% for a month. The performance of Time Warner Inc. (NYSE:TWX) for the quarter recorded as 4.44% and for year stands at 40.36%, while the YTD performance was 2.42%. The co attains 0.62 for Average True Range for 14 days. The stock price of TWX is moving up from its 20 days moving average with 0.75% and isolated positively from 50 days moving average with 2.27%.

 

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