Discovery Communications Inc (DISCA): 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.

Discovery Communications ( DISCA) pushed the Media industry higher today making it today's featured media winner. The industry as a whole was unchanged today. By the end of trading, Discovery Communications rose $1.23 (2%) to $61.74 on heavy volume. Throughout the day, 2.2 million shares of Discovery Communications exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in a price between $59.86-$63.20 after having opened the day at $60.52 as compared to the previous trading day's close of $60.51. Other companies within the Media industry that increased today were: Point.360 ( PTSX), up 13.1%, Daily Journal Corporation ( DJCO), up 10.6%, Radio One ( ROIA), up 9.2%, and Insignia Systems ( ISIG), up 8.1%.
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Discovery Communications, Inc. operates as a non fiction media and entertainment company worldwide. The company provides original and purchased programming across various distribution platforms. Discovery Communications has a market cap of $8.69 billion and is part of the services sector. The company has a P/E ratio of 21.8, above the S&P 500 P/E ratio of 17.7. Shares are up 46.3% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate Discovery Communications a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Discovery Communications 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, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Pandora Media ( P), down 17.5%, LodgeNet Interactive Corporation ( LNET), down 11.7%, Inuvo ( INUV), down 10.9%, and Spanish Broadcasting System ( SBSA), down 10.3%, were all laggards within the media industry with News Corporation ( NWSA) 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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