Time Warner Inc
) recorded a new 52-week high of $60.30 yesterday, before closing
at $60.19, rising approximately 21.6% year to date. Based on the
current price, this media and entertainment company is 2.2% above
the Zacks Consensus average analyst price target of $58.90.
Moreover, it currently trades at a forward P/E of 16.38x, at
par with the peer group average. Additionally, the company's
long-term estimated EPS growth rate is 10.6%, which is relatively
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 with
Time Warner Cable Inc
), which strengthen its multichannel subscription model by adding
more platforms to deliver its content.
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 UK. Presently, the company plans to launch the
technology in Australia, France, Germany, Irelandand New
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 also
announced a new share buyback plan of $4 billion.
Going forward, this Zacks Rank #3 (Hold) stock projects low
double-digit growth rate in earnings per share for 2013.
Alongside, one of its peers
) crafted a new 52-week high of $31.75, yesterday.
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