News Corporation (NWSA): 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.

News Corporation ( NWSA) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day down 1.2%. By the end of trading, News Corporation fell 31 cents (-1.3%) to $24.36 on average volume. Throughout the day, 15.8 million shares of News Corporation exchanged hands as compared to its average daily volume of 13.8 million shares. The stock ranged in price between $24.34-$24.94 after having opened the day at $24.56 as compared to the previous trading day's close of $24.67. Other companies within the Media industry that declined today were: Point.360 ( PTSX), down 17.5%, Beasley Broadcast Group ( BBGI), down 13.4%, Inuvo ( INUV), down 12.3%, and SearchMedia Holdings ( IDI), down 10%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

News Corporation operates as a diversified media company worldwide. News Corporation has a market cap of $38.01 billion and is part of the services sector. The company has a P/E ratio of 41.9, above the S&P 500 P/E ratio of 17.7. Shares are up 36.1% year to date as of the close of trading on Wednesday. Currently there are 17 analysts that rate News Corporation a buy, no analysts rate it a sell, and four rate it a hold.

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

On the positive front, Monster Worldwide ( MWW), up 10.2%, AMC Networks ( AMCX), up 8.5%, Lee ( LEE), up 8.1%, and ChinaNet Online Holdings ( CNET), up 5.2%, were all gainers within the media industry with DISH Network ( DISH) being today's featured media industry leader.

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 for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!.

If you liked this article you might like

Google Throws Publishers a Bone With Eased Subscription Access Policy

One Entrepreneur Is Creating an Apple iTunes for News

Can an iTunes for News Succeed? Chartbeat Founder Thinks So

Tronc Has Another Makeover Project With Daily News

News Corp, Telstra to Merge FoxSports Into Foxtel