Can Time Warner Cable Continue to See A Rise in Its Stock?
With shares of Time Warner Cable (NYSE:TWC) trading around $708, is TWC an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Time Warner Cable is a provider of video, high-speed data, and voice services in the United States, with systems located in five geographic areas: New York, the Carolinas, Ohio, Southern California, and Texas. The company offers its residential and business services customers numerous services over its broadband cable systems. With such a large and growing user base, look for Time Warner Cable to continue to see rising profits from its media, entertainment, and communications offerings.
In recent news, 21st Century Fox (NASDAQ:FOXA) said that its new network, Fox Sports 1, a 24-hour sports network, will launch Saturday as planned, with all major distributors including Time Warner Cable on board, as well as 90 million subscribers. Also, Charter Communications (NASDAQ:CHTR) is teaming up with Goldman Sachs (NYSE:GS) to try and buy Time Warner Cable. And Time Warner Cable is reportedly still in negotiations to acquire a 25 percent take in Hulu LLC, even after Hulu’s owners announced the site was not for sale.
T = Technicals on the Stock Chart Are Strong
Time Warner Cable stock has been moving higher in recent years. The stock is trading at all-time high prices and does not see any significant signs of slowing. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Time Warner Cable is trading slightly above its rising key averages, which signals neutral to bullish price action in the near term.