The discretionary sector in the U.S. markets (NASDAQ, NYSE, Dow, Russell 2000) has been one best performing groups with the U.S. universe. It is also one of the first groups to break out of the Q1 consolidation/pullback. And for good reason. The U.S. economy is growing rapidly, unemployment just hit a level not seen since the 1960s (3.8%). Wages are starting to rise and consumer optimism indexes just posted a new all-time high.
One of the stocks that caught our attention this week fits right into that theme – Twenty-First Century Fox, Inc. Below are the key fundamental and technical features.
Company Profile: Twenty-First Century Fox, Inc., together with its subsidiaries, operates as a diversified media and entertainment company primarily in the United States, the United Kingdom, Continental Europe, Asia, and Latin America. It operates through Cable Network Programming, Television, and Filmed Entertainment segments. The company produces and licenses news, business news, sports, general entertainment, factual entertainment, and movie programming for distribution primarily through cable television systems, direct broadcast satellite operators, telecommunication companies, and online video distributors.
Trailing P/E: 18.28, Forward P/E: 17.58
EPS: 2.16, Beta: 1.21
PEG: 2.11, P/S: 2.53
P/B: 3.86, Profit Margin: 13.76%
Operating Margin: 20.29%, ROA: 7.08%
ROE: 22.95%, Qrtly Earnings Growth: 7.40%
Current Ratio: 2.05
Additional Fundamental Data: https://finance.yahoo.com/quote/FOX/key-statistics?p=FOX
Recently broke out of a 5-month consolidation
New 52-week high, New all-time high
Buying momentum (RSI) is rising and positive
Buying volume is neutral, 1st support is at $38.40
The safety stop is at $37.25
The target is $45
Suggested buying approach: Buy FOX at the current price level. If the stock pulls back, as long as the price is above the safety stop, wait for confirmation of support and then add to the position if desired. Always use a 3% trailing stop.
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