With shares of Dish Network (NASDAQ:DISH) trading around $47, is DISH 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
Dish Network is a pay-television provider that offers a range of local and national programming, featuring more national and local high-definition channels than most pay-TV providers. A rising number of consumers are opting for satellite services due to the reduced costs and increased coverage offered. Dish Network is poised to capitalize on this rise in consumer interest as entertainment takes center stage for consumers in the United States.
Recently, Dish Network, working with the Federal Communications Commission, made some changes to its wireless spectrum that increased the value of the spectrum by $1 billion, according to analysts cited by The Wall Street Journal. Dish has been steadily acquiring wireless spectrum for several years, as CEO Charlie Ergen seeks to take the company into the wireless phone industry. On Tuesday, Dish agreed to stop plans to use its spectrum for a TV broadcast service due to concerns that the plan would cause interference with other services. Instead, Dish is looking to make technical changes that could allow the spectrum to be used for the downloading of information, which would cause less interference and allow Dish to use a greater volume of the spectrum it owns.
T = Technicals on the Stock Chart Are Strong
Dish Network stock has seen a consistent uptrend in the last few years. The stock is currently trading at highs for the year and looks ready to continue. 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, Dish Network is trading above its rising key averages, which signals neutral to bullish price action in the near-term.