Discovery Communications Inc (DISCA): 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.

Discovery Communications ( DISCA) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Discovery Communications fell 71 cents (-1.1%) to $67.09 on average volume. Throughout the day, 1.4 million shares of Discovery Communications exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $66.90-$67.78 after having opened the day at $67.50 as compared to the previous trading day's close of $67.80. Other companies within the Media industry that declined today were: McClatchy Company ( MNI), down 5.4%, Clear Channel Outdoor Holdings ( CCO), down 2.6%, VisionChina Media ( VISN), down 2.6%, and Carmike Cinemas ( CKEC), down 2.5%.
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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 $9.88 billion and is part of the services sector. The company has a P/E ratio of 24.8, above the S&P 500 P/E ratio of 17.7. Shares are up 7.4% year to date as of the close of trading on Monday. Currently there are eight analysts that rate Discovery Communications a buy, no analysts rate it a sell, and 11 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 positive front, Point.360 ( PTSX), up 14.1%, Inuvo ( INUV), up 9.4%, Charm Communications ( CHRM), up 6.8%, and Digital Cinema Destinations Corp Class A ( DCIN), up 4%, were all gainers within the media industry with Gannett ( GCI) 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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