Market Overview

DirecTV and DISH Network to Open Near 52-Week Highs

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DirecTV (NASDAQ: DTV) and DISH Network (NASDAQ: DISH) reached new 52-week highs of $51.23 and $30.84 per share, respectively, in Thursday's trading session.

DirecTV has an active share buyback program, and Kaufman Bros and Deutsche Bank expect the share price to rise about 20% this year, due in part to expansion into Latin America. The company operates the largest direct broadcast satellite service in the U.S., serving 18 million U.S. customers and more than 6 million subscribers in Latin America. DirecTV has a market cap of $39.0 billion.

The return on equity is 172.2% and the long-term EPS growth forecast is 22.6%. It has a PEG ratio of 0.6, and the P/E ratio is less than the industry average. The stock has grown more than 27% since the beginning of the year, outperforming competitors Comcast (NASDAQ: CMCSA) and Time Warner Cable (NYSE: TWC), as well as the broader markets.

DISH Network is said to be close a deal to buy the radio spectrum licenses of bankrupt telecom TerreStar Networks, which would make DISH one of the biggest airwave holders. The Englewood, Colorado-based company has a $6.3 billion market cap and is the nation's second largest provider of direct broadcast satellite TV service, serving about 14 million subscribers.

The company's return on equity is 371.5%. Its P/E ratio of 10.6 less than the industry average and that of rival DirectTV. Short interest has fallen from last fall to 1.6% of the float. The share price has increased nearly 69% over the past year. In that time, the stock has outperformed DirecTV and the cable television industry average, as well as the broader markets.

 

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