Walt Disney Co (DIS): 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.

Walt Disney ( DIS) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Walt Disney fell $2.98 (-6%) to $47.06 on heavy volume. Throughout the day, 34.1 million shares of Walt Disney exchanged hands as compared to its average daily volume of 7.9 million shares. The stock ranged in price between $46.53-$47.95 after having opened the day at $46.99 as compared to the previous trading day's close of $50.04. Other companies within the Media industry that declined today were: Point.360 ( PTSX), down 12%, KIT Digital ( KITD), down 6.9%, Beasley Broadcast Group ( BBGI), down 6.3%, and Bona Film Group ( BONA), down 4.1%.
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The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. Walt Disney has a market cap of $89.86 billion and is part of the services sector. The company has a P/E ratio of 16.6, below the S&P 500 P/E ratio of 17.7. Shares are up 33.5% year to date as of the close of trading on Thursday. Currently there are 16 analysts that rate Walt Disney a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Walt Disney 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, revenue growth, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Lions Gate Entertainment Corporation ( LGF), up 14.3%, Noah Education Holdings ( NED), up 7%, Charm Communications ( CHRM), up 6.2%, and NTN Buzztime ( NTN), up 5.3%, were all gainers within the media industry with Time Warner ( TWX) 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).

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