How Does Discovery Communications, Inc. (DISCA) Stack Up Right Now?

Discovery Communications, Inc. (DISCA) is an interesting player in the Services space, with a focus on CATV Systems. The stock has been active on the tape, currently trading at $19.44, down from yesterday’s close by -2.11%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. Discovery Communications, Inc. (DISCA) currently trades with a market capitalization of $7.07 Billion. That value represents a market adjusting for revenues that have been growing by 6.11 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For DISCA, the company currently has $6.99 Billion of cash on the books, which is offset by $32 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $1.65 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.44 on a per share basis this quarter. Perhaps, that suggests something about why 49.00% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Discovery Communications, Inc. recorded a 52-week high of $30.25. It is now trading 10.81% off that level. The stock is trading $19.01 its 50-day moving average by -0.43%. The stock carved out a 52-week low down at $15.99.

In recent action, Discovery Communications, Inc. (DISCA) has made a move of +12.18% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 17.32, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 9.92% with $355.89 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of DISCA.

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