Scripps Networks Interactive Inc (SNI): Today's Featured Media Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Scripps Networks Interactive ( SNI) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Scripps Networks Interactive fell 70 cents (-1.2%) to $58.92 on light volume. Throughout the day, 666,557 shares of Scripps Networks Interactive exchanged hands as compared to its average daily volume of 995,500 shares. The stock ranged in price between $58.63-$59.55 after having opened the day at $59.49 as compared to the previous trading day's close of $59.62. Other companies within the Media industry that declined today were: LodgeNet Interactive Corporation ( LNET), down 16.5%, Digital Domain Media Group ( DDMG), down 10.7%, SearchMedia Holdings ( IDI), down 8.2%, and AirMedia Group ( AMCN), down 5.6%.

Scripps Networks Interactive, Inc. operates as a lifestyle content company in the United States and internationally. It engages in the operation of television networks, including Home and Garden Television, Food Network, Travel Channel, DIY Network, Cooking Channel, and Great American Country. Scripps Networks Interactive has a market cap of $6.92 billion and is part of the services sector. The company has a P/E ratio of 18.7, below the average media industry P/E ratio of 18.9 and above the S&P 500 P/E ratio of 17.7. Shares are up 40.6% year to date as of the close of trading on Friday. Currently there are seven analysts that rate Scripps Networks Interactive a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Scripps Networks Interactive as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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