Melco Crown Entertainment Ltd (MPEL): Today's Featured Leisure Winner

Melco Crown Entertainment ( MPEL) pushed the Leisure industry higher today making it today's featured leisure winner. The industry as a whole closed the day down 0.3%. By the end of trading, Melco Crown Entertainment rose 17 cents (1.7%) to $10.39 on light volume. Throughout the day, 5.2 million shares of Melco Crown Entertainment exchanged hands as compared to its average daily volume of 6.9 million shares. The stock ranged in a price between $10.27-$10.58 after having opened the day at $10.28 as compared to the previous trading day's close of $10.22. Other companies within the Leisure industry that increased today were: Orbitz Worldwide ( OWW), up 5.4%, Dover Motorsports ( DVD), up 3.7%, Fiesta Restaurant Group ( FRGI), up 3.1%, and Fiesta Restaurant Group ( FRGIV), up 3.1%.

Melco Crown Entertainment Limited, through its subsidiaries, engages in the development, ownership, and operation of casino gaming and entertainment resort facilities primarily in Macau. Melco Crown Entertainment has a market cap of $5.73 billion and is part of the services sector. The company has a P/E ratio of 18.9, above the average leisure industry P/E ratio of 13.8 and above the S&P 500 P/E ratio of 17.7. Shares are up 8% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate Melco Crown Entertainment a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Melco Crown Entertainment as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Sonic Corporation ( SONC), down 9.4%, Caesars Entertainment ( CZR), down 8%, Multimedia Games ( MGAM), down 6%, and Life Time Fitness ( LTM), down 3.1%, were all losers within the leisure industry with MGM Resorts International ( MGM) being today's leisure industry loser.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).
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