All Clear for CBS to Surge Higher?

With shares of CBS Corp. (NYSE:CBS) trading around $53, is CBS an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework.

T = Trends for a Stock’s Movement

CBS operates as a mass media company in the United States and abroad. The company operates in the entertainment, cable networks, publishing, local broadcasting, and outdoor segments. Consumers seek entertainment of various forms and through an array of platforms at an increasing rate, and through its segments, CBS is able to fulfill consumer needs as it continues to release content that excites the masses. Consumers around the world always seek varied forms of entertainment, and CBS is dedicated to delivering that media, which can only lead to growth and rising profits well into the future.

CBS and Time Warner Cable’s (NYSE:TWC) battle over retransmission fees has now been settled, to the advantage of CBS. Time Warner Cable is being forced to pay a significant increase in retransmission fees, although the figure is still below $2 per subscriber per month. The blackout of CBS programming from Time Warner Cable is now ending, just in time for the start of the NFL season.

T = Technicals on the Stock Chart Are Strong

CBS stock has been surging higher in recent years. The stock is now consolidating near all-time highs and looks poised to continue. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, CBS is trading above its rising key averages, which signals neutral to bullish price action in the near term.


Source: Thinkorswim