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

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.

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 up 0.4%. By the end of trading, Melco Crown Entertainment rose 20 cents (1.5%) to $13.68 on average volume. Throughout the day, 5.4 million shares of Melco Crown Entertainment exchanged hands as compared to its average daily volume of 4.6 million shares. The stock ranged in a price between $13.50-$13.97 after having opened the day at $13.55 as compared to the previous trading day's close of $13.48. Other companies within the Leisure industry that increased today were: Chuy's Holdings ( CHUY), up 11.1%, Country Style Cooking Restaurant Chain ( CCSC), up 8%, Empire Resorts ( NYNY), up 5.4%, and Home Inns & Hotels Management ( HMIN), up 5%.
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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 $7.35 billion and is part of the services sector. The company has a P/E ratio of 24.3, above the average leisure industry P/E ratio of 17.2 and above the S&P 500 P/E ratio of 17.7. Shares are up 40.1% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Melco Crown Entertainment a buy, one analyst rates it a sell, and one rates 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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Wendy's ( WEN), down 6.1%, Cosi ( COSI), down 3.8%, Full House Resorts ( FLL), down 3.7%, and MTR Gaming Group ( MNTG), down 3.1%, were all laggards within the leisure industry with Expedia ( EXPE) being today's leisure industry laggard.

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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