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 down 1.9%. By the end of trading, Directv fell $1.02 (-2%) to $49.49 on heavy volume. Throughout the day, 6.1 million shares of Directv exchanged hands as compared to its average daily volume of four million shares. The stock ranged in price between $49.14-$50.04 after having opened the day at $50.04 as compared to the previous trading day's close of $50.51. Other companies within the Services sector that declined today were: Quality Distribution ( QLTY), down 34%, Furmanite Corporation ( FRM), down 18.7%, U.S. Auto Parts Network ( PRTS), down 17.5%, and Scientific Games Corporation ( SGMS), down 16.6%.
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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 $31.81 billion and is part of the media industry. The company has a P/E ratio of 13.1, below the S&P 500 P/E ratio of 17.7. Shares are unchanged year to date as of the close of trading on Tuesday. 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 no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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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