Time Warner Inc (TWX): 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.

Time Warner ( TWX) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day down 1.5%. By the end of trading, Time Warner fell 94 cents (-2%) to $45.56 on light volume. Throughout the day, five million shares of Time Warner exchanged hands as compared to its average daily volume of 7.6 million shares. The stock ranged in price between $45.55-$46.59 after having opened the day at $46.43 as compared to the previous trading day's close of $46.50. Other companies within the Media industry that declined today were: KIT Digital ( KITD), down 9.5%, LodgeNet Interactive Corporation ( LNET), down 9.3%, Insignia Systems ( ISIG), down 8.4%, and Promotora de Informaciones SA/FI ADR ( PRIS), down 7.4%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Film and TV Entertainment, and Publishing. Time Warner has a market cap of $43.82 billion and is part of the services sector. The company has a P/E ratio of 18, equal to the average media industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 27.8% year to date as of the close of trading on Monday. Currently there are 16 analysts that rate Time Warner a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Time Warner as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

Cramer: Northrop-Orbital Deal Is Bigger Than Just the Synergies

Netflix's Tough Loss to Hulu at the Emmys: Why It Matters

Hulu Threatens Landmark Networks With Prestigious Emmy Win

Hulu Makes History as Streaming Services Sweep the Emmys

Weekend Box Office: 'Mother!' Flops With F Rating, 'It' Smashes Records