Time Warner Inc (TWX): 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.

Time Warner ( TWX) pushed the Media industry higher today making it today's featured media winner. The industry as a whole closed the day up 0.1%. By the end of trading, Time Warner rose 66 cents (1.5%) to $44.70 on average volume. Throughout the day, 7.3 million shares of Time Warner exchanged hands as compared to its average daily volume of 6.6 million shares. The stock ranged in a price between $43.90-$44.76 after having opened the day at $44.10 as compared to the previous trading day's close of $44.04. Other companies within the Media industry that increased today were: Charm Communications ( CHRM), up 12.1%, Inuvo ( INUV), up 11%, SearchMedia Holdings ( IDI), up 9.5%, and LodgeNet Interactive Corporation ( LNET), up 8.8%.
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Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Film and TV Entertainment, and Publishing. Time Warner has a market cap of $41.76 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 22% year to date as of the close of trading on Thursday. Currently there are 16 analysts that rate Time Warner a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Time Warner as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Dial Global ( DIAL), down 76.7%, AirMedia Group ( AMCN), down 10.5%, VisionChina Media ( VISN), down 5%, and RealD ( RLD), down 4.9%, were all laggards within the media industry with Focus Media ( FMCN) 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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