Time Warner Cable Inc (TWC): 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.

Time Warner Cable ( TWC) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.2%. By the end of trading, Time Warner Cable fell $1.56 (-1.7%) to $91.54 on average volume. Throughout the day, 1.6 million shares of Time Warner Cable exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $91.33-$93.30 after having opened the day at $93.09 as compared to the previous trading day's close of $93.10. Other companies within the Services sector that declined today were: LodgeNet Interactive Corporation ( LNET), down 51.4%, Bidz.com ( BIDZ), down 42.6%, ENGlobal Corporation ( ENG), down 16.4%, and J.C. Penney ( JCP), down 12.9%.
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Time Warner Cable Inc., together with its subsidiaries, operates as a cable operator in the United States. It offers video, high-speed data, and voice services over its broadband cable systems to residential and business service customers. Time Warner Cable has a market cap of $28.07 billion and is part of the media industry. The company has a P/E ratio of 13.4, below the S&P 500 P/E ratio of 17.7. Shares are up 46.5% year to date as of the close of trading on Friday. Currently there are 17 analysts that rate Time Warner Cable a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Time Warner Cable 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 notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Pizza Inn Holdings ( PZZI), up 20.9%, Point.360 ( PTSX), up 18.7%, iParty Corporation ( IPT), up 17.6%, and Cambium Learning Group ( ABCD), up 14.3%, were all gainers within the services sector with Moody's Corporation ( MCO) being today's featured services sector leader.

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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