Friday August 10, 2012
by Leo Fasciocco, editor Ticker Tape Digest
CBS Inc. (
CBS) has businesses with origins that date back to the beginnings of TV broadcasting as well as new ventures that operate on media's leading edge.
It owns the most-watched TV network in the U.S. and one of the world's largest entertainment libraries. Its operations span cable, publishing, radio, TV, film, outdoor advertising, and interactive and socially responsible media.
The company reported second quarter earnings climbed to 65 cents a share. That was 7 cents above the consensus Street estimate of 58 cents a share.
For this year, analysts are forecasting a 29% jump in CBS's earnings to $2.50 a share from $1.94 a year ago. The stock sells with a p/e ratio of 14. We see that as attractive to value investors.
Going out to 2013, profits are projected to rise 14% to $2.84 a share from the anticipated $2.50 this year.
Institutional sponsorship is excellent. The largest fund buyer recently was 5-star rated Mutual Global Discovery Z Fund which purchased 4.2 million shares.Also, 5-star rated JPMorgan Mid Cap Value Fund added 42,410 shares.
Over the last 12-monts, the stock has appreciated 42% versus a 15% gain for the S&P 500 index. Technically, the stock has broken out from a 14-week flat base on a gap move and strong volume..
The stock's momentum indicator is strongly bullish. And the accumulation - distribution line is in a strong up trend indicating steady buying interest in CBS. We are targeting a move to 42 off this breakout. A protective stop can be placed near 32.
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