Direct TV profits soar -- DTV

Direct TV ( DTV ) is having a great year. They are buying back stock at a fantastic rate. They are also experiencing terrific costs savings as the prices on their equipment is coming down.

DIRECTV Class A is a provider of digital multichannel television entertainment, broadband satellite networks and services, and global video and data broadcasting in the United States and Latin America. The Company operates in two segments, DIRECTV U.S. and DIRECTV Latin America (DTVLA). DIRECTV Holdings LLC and its subsidiaries, referred to as the DIRECTV U.S., is the provider of direct-to-home (DTH), digital television services and is also engaged in the multi-channel video programming distribution industry in the United States. The Company provides its subscribers with access to hundreds of channels of digital-quality video pictures and compact disc - quality audio programming that it transmits directly to subscribers' homes or businesses through high-powered geosynchronous satellites. The DIRECTV Latin America segment provides DTH digital television services in Latin America and the Caribbean, including Puerto Rico. The company is based in El Segundo, California. ( press release )

The stock has recently experienced a 7.74% price appreciation in the last 30 days and hit new highs in 10 of the last 20 trading sessions and also 4 of the last 5. Barchart technical indicators signal 12 of 13 buy signals for an 88% buy rating. The stock trades around 37.98 with a 50 day moving average of 35.14.

Wall Street likes the stock with 13 buy and 7 hold recommendations released. Sales are estimated to increase 8.90% this year and 7.40% next year. Earnings forecasts are aggressive with EPS growth predictions of 58.60% this year, 27.00% next year and a 5 year compounded EPS growth rate of 19.15%.

Motley Fool members express a very positive investor sentiment with CAPS members voting that the stock will beat the market by a vote of 576 to 61 and the more experienced All Stars agree by 152 to 12. Fool list positive Wall Street articles 24 to 1.

The stock has a lot going for it:

1. Recent price momentum with an 88% Barchart technical buy signal
2. Wall Street buy recommendations with forecasts of increased sales and earnings
3. Very positive investor sentiment

Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com.

No positions in DTV at the time of publication