The Thomson Reuters logo is seen on the company building in Times Square, New York.CARLO ALLEGRI/Reuters
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Media company Thomson Reuters (TRI-T;TRI-N) currently has a StockReports+ score of 10. It's risen to that level from a rating of 7 over the past 18 weeks. In the past three years, the company's best score was 10 on Oct. 18, 2015 and the worst score was 3 on June 14, 2015. Thomson Reuters' score of 10 means the company is currently among an exclusive group of 62 stocks awarded the highest score. Its one-year return is 33.6 per cent and its five-year return is 36.8 per cent. Most analysts have a "buy" rating on the stock.
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Earnings -- Rating: 8
The outlook is positive, with strong earnings with recent analyst upgrades or a history of surpassing consensus estimates. Its rating of 8 puts it above the 6.2 average of the profiessional and commercial services group.
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Fundamental -- Rating: 9
The outlook is positive with strong fundamentals such as high profit margins, low debt levels, or growing dividends. Its rating places it above it's peer group rating average of 5.6. The company's gross margin and current ratio has been lower than its Industry Group average for each of the past five years. Of the 57 firms within the professional and commercial services Industry Group, Thomson Reuters is among 18 companies that pay a dividend. The stock's dividend yield is currently 3.2 per cent.
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Relative valuation -- Rating: 4
The outlook is neutral with multiples relatively in-line with the market. Its rating is in line with its peer group's rating at 4.5. Based on its price to sales ratio, Thomson currently trades at a 29-per-cent premium to its peer group. Based on Trailing price-to-earnings ratio Thomson currently trades at a 50-per-centd iscount to its peer group. At 19.3, Thomson's current forward P/E is at a 32-per-cent discount to the S&P/TSX composite index average of 28.3.
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Risk -- Rating: 10
The outlook is positive as the stock has consistent return patterns and low volatility. Thomson's rating of 10 is far higher than it's peer group's 5.5 rating. Over the last 90 days, Thomson shares have been less volatile than the overall market, as the stock's daily price has fluctuated less than 92 per cent of S&P/TSX composite index firms.
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Price momentum - Rating: 10
The outlook is positive as the stock has had strong recent price performance or is entering an historically favourable seasonal period. On Oct. 21, Thomson closed at $54.60, 1.2 per cent below its 52-week high and 34.7 per cent above its 52-week low. Its shares are currently trading 3.6 per cent above their 50-day moving average of $52.71, and 8.1 per cent above their 200-day moving average of $50.51.
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StockReports+ gives each stock an average score that combines the quantitative analysis of six widely-used investment decision-making tools: earnings, fundamentals, relative valuation, risk, price momentum and insider trading. The average score for Thomson Reuters is 10 out of 10.
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