Time Warner Inc.
) 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
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.
The Walt Disney Company
Dollar General Corporation
) achieved new 52-week highs of $43.70, $69.87 and $59.87,
respectively, on Oct 25, 2013.
BEST BUY (BBY): Free Stock Analysis Report
DOLLAR GENERAL (DG): Free Stock Analysis
DISNEY WALT (DIS): Free Stock Analysis Report
TIME WARNER INC (TWX): Free Stock Analysis
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