Discovery Communications Inc (DISCA): Today's Featured Media 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.

Discovery Communications ( DISCA) pushed the Media industry higher today making it today's featured media winner. The industry as a whole closed the day up 0.2%. By the end of trading, Discovery Communications rose 83 cents (1.4%) to $59.02 on average volume. Throughout the day, 1.1 million shares of Discovery Communications exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in a price between $58.19-$59.11 after having opened the day at $58.79 as compared to the previous trading day's close of $58.19. Other companies within the Media industry that increased today were: ChinaNet Online Holdings ( CNET), up 13.1%, Envoy Capital Group ( ECGI), up 9.6%, McClatchy Company ( MNI), up 8.8%, and KIT Digital ( KITD), up 6.9%.
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Discovery Communications, Inc. operates as a non fiction media and entertainment company worldwide. The company provides original and purchased programming across various distribution platforms. Discovery Communications has a market cap of $8.49 billion and is part of the services sector. The company has a P/E ratio of 21, equal to the average media industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 42% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate Discovery Communications a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Discovery Communications 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, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Charm Communications ( CHRM), down 23%, Central European Media ( CETV), down 19.2%, QuinStreet ( QNST), down 11.3%, and RLJ Entertainment ( RLJE), down 7.3%, were all laggards within the media industry with Walt Disney ( DIS) being today's media industry laggard.

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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