Back to top

Analyst Blog

Shares of Time Warner Inc. (TWX - Analyst Report) surged to attain a new 52-week high of $70.58 on Oct 25, 2013, before closing at $70.26. Shares of this Zacks Rank #3 (Hold) stock have generated a year-to-date return of roughly 43.3%.

Based on the current price, this media and entertainment company is 2.4% below the Zacks Consensus average analyst price target of $68.63. The company currently trades at a forward P/E of 18.75x, a 2.9% premium to the peer group average of 18.22x. Additionally, the company’s long-term estimated EPS growth rate is 10.9%.

We believe Time Warner’s initiatives such as foraying into new markets, divestment activities and digital endeavors would augur well for its operating performance in the future. Moreover, the company’s investments in programming, production and marketing along with its focus on operating and capital efficiencies appear to be encouraging. Time Warner has been expanding its digital presence to allow consumers to enjoy content on a wide range of platforms and devices. We are optimistic about management’s expectations to achieve mid-teens EPS growth in 2013.

Time Warner has been benefiting from its significant international presence as it helped the company broaden its client base and product portfolio. The company operates in the United Kingdom, Germany, Canada, France, Japan and other countries apart from the United States.

It entered into a partnership with China’s leading media and entertainment investment fund, China Media Capital. In our view, this partnership complements the company’s strategy to expand its presence in the Chinese entertainment market. Moreover, Time Warner with its strong content and industry-leading portfolio of renowned brands is likely to benefit from the largest and fastest growing Chinese media sector. In recent years, China has emerged as an important market for media and entertainment companies.

Apart from Time Warner, other stocks such as Best Buy Co., Inc. (BBY - Analyst Report), The Walt Disney Company (DIS - Analyst Report) and Dollar General Corporation (DG - Analyst Report) achieved new 52-week highs of $43.70, $69.87 and $59.87, respectively, on Oct 25, 2013.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
PANTRY INC PTRY 21.02 +2.09%
INTEL CORP INTC 35.15 +1.88%
PIPER JAFFR… PJC 54.54 +1.70%