Focus Media Holding Ltd. (FMCN): 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.

Focus Media ( FMCN) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Focus Media fell 34 cents (-1.4%) to $24.84 on average volume. Throughout the day, 1.8 million shares of Focus Media exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $24.70-$25.35 after having opened the day at $25.24 as compared to the previous trading day's close of $25.18. Other companies within the Media industry that declined today were: Dial Global ( DIAL), down 76.7%, AirMedia Group ( AMCN), down 10.5%, VisionChina Media ( VISN), down 5%, and RealD ( RLD), down 4.9%.
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Focus Media Holding Limited, a multi-platform digital media company, operates liquid crystal display (LCD) network using audiovisual digital displays in China. Focus Media has a market cap of $3.25 billion and is part of the services sector. The company has a P/E ratio of 9.6, below the S&P 500 P/E ratio of 17.7. Shares are up 29% year to date as of the close of trading on Thursday. Currently there are five analysts that rate Focus Media a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Focus Media as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Charm Communications ( CHRM), up 12.1%, Inuvo ( INUV), up 11%, SearchMedia Holdings ( IDI), up 9.5%, and LodgeNet Interactive Corporation ( LNET), up 8.8%, 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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