Focus Media Holding Ltd. (FMCN): Today's Featured Media Stock

Correction: An earlier version of this article incorrectly stated Focus Media's closing price.

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) fell 44 cents (-1.8%) to $23.77 on average daily volume of 2.3 million shares. The stock ranged in price between $23.62-$24.32.
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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 $3.15 billion and is part of the services sector. The company has a P/E ratio of 8.9, below the S&P 500 P/E ratio of 17.7. Shares are up 24.9% year to date as of the close of trading on Thursday. Currently there are four 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, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, SearchMedia Holdings ( IDI), up 10.7%, Charm Communications ( CHRM), up 8.3%, ChinaNet Online Holdings ( CNET), up 7.8%, and Noah Education Holdings ( NED), up 6.2%, were all gainers within the media industry with Charter Communications ( CHTR) 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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