Directv (DTV): Today's Featured Services 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.

Directv ( DTV) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.4%. By the end of trading, Directv fell 58 cents (-1.1%) to $50.13 on average volume. Throughout the day, 5.8 million shares of Directv exchanged hands as compared to its average daily volume of 4.3 million shares. The stock ranged in price between $49.98-$51.18 after having opened the day at $50.78 as compared to the previous trading day's close of $50.71. Other companies within the Services sector that declined today were: LodgeNet Interactive Corporation ( LNET), down 14.4%, KIT Digital ( KITD), down 10.2%, NTN Buzztime ( NTN), down 10%, and Dollar Tree Stores ( DLTR), down 7.7%.
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DIRECTV provides digital television entertainment primarily in the United States and Latin America. The company engages in acquiring, promoting, selling, and distributing digital entertainment programming primarily via satellite to residential and commercial subscribers. Directv has a market cap of $32.03 billion and is part of the media industry. The company has a P/E ratio of 13.2, equal to the average media industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are unchanged year to date as of the close of trading on Wednesday. Currently there are 13 analysts that rate Directv a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates Directv as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, revenue growth, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, ChinaNet Online Holdings ( CNET), up 22.7%, USA Technologies ( USAT), up 21.8%, China HGS Real Estate ( HGSH), up 19.6%, and Digital Cinema Destinations ( DCIN), up 16.7%, were all gainers within the services sector with Walgreen Company ( WAG) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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