Bull’s Eye Report: AMC Networks (AMCX)

Cable media companies like AMCX look strong for a trade

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
AMC Networks Inc AMCX Cable & Satellite 9.8 +25.22% $61.99

Why We Like The Stock:

AMC Networks (AMCX) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Very few stocks have held up in the face of the destructive action over the past few days. However, cable and satellite stocks like Starz (STRZA), DISH Network (DISH), and AMCX have all maintained their technical set-up, not even flinching to the downside despite a -4% decline on the S&P 500 since Wednesday. AMCX currently sits at around $63.85, just below its major moving averages. The good news is that the stock has a nice base at its current price, and looks fantastic on a weekly basis. Short-term potential upside is 7.20% higher at $68.34, which is a nice gain for a short-term play. Most importantly though, it looks as if the massive volatility in the summer months (has happened every year since 2010 as if on queue) has finally arrived. In these environments, it’s important to pinpoint what is working and what is not working — and quickly. With that said, AMCX looks like it will continue working for some time. We would be buyers at current prices.

We Would Be Buyers:

At the current price (~$64.17).

Company Profile:

AMC Networks Inc.  is a holding company and conducts substantially all of its operations through its subsidiaries. AMC Networks owns and operates several of cable television’s brands delivering content to audiences. AMC Networks operates in two segments: National Networks, which includes AMC, WE tv, IFC and Sundance Channel, and International and Other, which includes AMC/Sundance Channel Global, its international programming business; IFC Films, its independent film distribution business, and AMC Networks Broadcasting & Technology, its network technical services business. The company’s national networks are distributed throughout the United States through cable and other multichannel video programming distribution platforms. In addition to the Company’s the United States distribution, AMC, IFC and Sundance Channel are available in Canada and Sundance Channel and WE tv are available in other countries throughout Europe and Asia.

Stock Rating: 9.8

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

AMC Networks – Last Three Months

amcx 1 Bulls Eye Report: AMC Networks (AMCX)

AMC Networks – Last 12 Months

amcx 2 Bulls Eye Report: AMC Networks (AMCX)

AMC Networks – Last Five Years

amcx 3 Bulls Eye Report: AMC Networks (AMCX)

Looking to trade the Bull’s Eye stock picks? Click here to download our free Special Report, “How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them”

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.


Article printed from InvestorPlace Media, http://investorplace.com/247trader/bulls-eye-report-amc-networks-amcx/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.