This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

5 Media Stocks Worth a Look in 2011

BOSTON ( TheStreet) -- Media industry stocks put in the second-best performance of any industry sector in 2010 with a 29% average return, and that pace of growth -- along with the industry's unpredictable evolution -- is expected to continue in 2011.

An improving economy and the prospect of more advertising revenue for broadcasters bodes well for a continuation of 2010's rebound.

"The sector seems poised to weather lingering challenges and turn in another strong year in 2011," said S&P Equity analyst Tuna Amobi, in a research note Tuesday.

But there is a huge divide between the sector's winners, which tend to be cable operators or content providers, and the losers, which have mainly been print-focused media companies.

For example, the diversified and content-rich Liberty Media Corp. (LCAPB) and satellite radio provider Sirius XM Radio (SIRI - Get Report), each had share price returns of more than 150% in 2010, while shares of The Washington Post (WPO) were flat and The New York Times' stock (NYT) lost 20.7%.

Small investors who want to hold a stake in the industry without buying individual stocks can buy exchange traded funds. One example is PowerShares Dynamic Media (PBS), an $85 million ETF with a 71% allocation to media stocks as well as to companies in contiguous industries, such as telecommunications and business services. Its shares rose 17.6% in 2010, and are up 2.6% this year.

The ETF's top-five holdings, which are each at about 5% of the assets of the fund, are: Omnicom (OMC), up 17% in 2010; Time Warner Cable (TWC - Get Report), up 60%, Viacom (VIA.B), up 33%; Walt Disney (DIS), up 16% and Directv (DTV), up 20% on the year.

The S&P 500 index was up 13% in 2010, excluding reinvested dividends.

The following is a synopsis of the investment fundamentals of five major media companies:

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
VIA.B $0.00 0.00%
CVC $18.78 -0.53%
NWSA $17.28 -0.29%
SIRI $3.89 -0.26%
TWC $154.05 1.08%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs