CBS Corporation (CBS) Currently On Hold

CBS Corporation is a mass media company that operates in both the US and Internationally and is near another 52 week high after a great climb to $24.51 today. This 5.51% improvement came after an analyst at Miller Tabak & Co liked the increased viewing audience watching the NCAA tournament on CBS this season.

The stock’s market capitalization is 16.48 billion dollars at the close today while the company pays out a dividend of 0.20, or 0.80% to its investors.

Earnings Season is approaching and CBS will be announcing their current quarter on May 3rd. The company has beat earnings estimates the past three quarters and has improving estimates for the current quarter. Over the last 90 days, estimates have moved from 15 cents a share to 18 cents a share. Earnings are expected to improve 37.80% this year over the last year reported. Revenue is a little less exciting, only improving 3.4% for the year.

The current price/earning ratio is 23.57 which is slightly lower than the growth rate, making the PEG ratio 0.92. If you believe that next year’s growth will only be what is expected, 26.10% then the stock is priced right were it sits today.

News came out today that Charlie Sheen might be heading back to CBS and his Two and a Half Men sitcom. The news slightly bolsters the networks ratings ability and therefore what it can command for advertising. Additionally, Sheen may be more popular now than he was when he was let go by the show weeks ago.

Options for the stock trade with light volume but the front month today saw some Call interest with Strike prices of 24 and 25 moving higher. The chart for the stock is currently signaling a hold but cold turn positive if the overall market improves and analyst become more positive about the upcoming earnings announcement.

I would stay out of the stock and the options until there is a break above current highs and the chart signals a buy. This could very well happen before May 3rd which would give you some time to profit before taking profits before the announcement.

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