After attaining a high of $58.02 on Mar 28, shares of
Time Warner Inc
) further soared to touch a new high of $59.09 yesterday.
Shares of this Media and Entertainment company eventually
closed at $58.80, rising approximately 18.8% year to date. The
company currently trades at a forward P/E of 16x, at par with the
peer group average.
Time Warner has been expanding its digital presence, enabling
consumers to enjoy its content through numerous platforms and
devices. Alongside, it has entered into several content
distribution deals, which strengthen its multichannel
subscription model by adding more platforms to deliver its
Meanwhile, Warner Bros. became the first movie studio to offer
video on demand, and acquired Flixster, a movie search
application on smartphones and mobile devices. The company also
launched a digital movie technology, UltraViolet, via which
consumers have the choice to watch movies on their preferred
Internet-connected devices. The device is available in the U.S.,
Canada and the U.K., and now the company plans to launch the
technology in Australia, France, Germany, Irelandand New
Alongside, Time Warner has been actively managing its cash
flows returning much of its free cash to shareholders via
dividend and share repurchases. During the last reported quarter,
the company generated free cash flow of $990 million. Time Warner
hiked its quarterly dividend by 11% to 28.75 cents a share and
announced a new share buyback plan of $4 billion. From Jan 1,
2012 through Feb 1, 2013, Time Warner bought back 84 million
shares, aggregating $3.5 billion.
Going forward, this Zacks Rank #3 (Hold) stock projects low
double-digit growth rate in earnings per share for 2013.
Besides Time Warner, companies such as
The Walt Disney Company
The Home Depot, Inc
) achieved new 52-week highs of $170.56, $59.24 and $71.57,
respectively, on Tuesday, Apr 9.
DISNEY WALT (DIS): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
TIME WARNER INC (TWX): Free Stock Analysis
V F CORP (VFC): Free Stock Analysis Report
To read this article on Zacks.com click here.