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 down 1.6%. By the end of trading, Directv fell 72 cents (-1.4%) to $51.35 on average volume. Throughout the day, 3.8 million shares of Directv exchanged hands as compared to its average daily volume of 4.4 million shares. The stock ranged in price between $50.94-$52.30 after having opened the day at $51.94 as compared to the previous trading day's close of $52.07. Other companies within the Services sector that declined today were:
Cleveland BioLabs (
CBLI), down 26.2%,
Innovaro (
INV), down 21.4%,
American Learning (
ALRN), down 16.1%, and
Chipotle Mexican Grill (
CMG), down 15%.
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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 $32.45 billion and is part of the media industry. The company has a P/E ratio of 13.4, 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 Thursday. 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 impressive record of earnings per share growth, revenue growth, good cash flow from operations, increase in stock price during the past year and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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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