Focus Media Holding Ltd. (FMCN): 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.

Focus Media ( FMCN) pushed the Media industry higher today making it today's featured media winner. The industry as a whole closed the day up 0.4%. By the end of trading, Focus Media rose 41 cents (1.6%) to $25.71 on heavy volume. Throughout the day, 4.2 million shares of Focus Media exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in a price between $25.01-$25.75 after having opened the day at $25.30 as compared to the previous trading day's close of $25.30. Other companies within the Media industry that increased today were: Tiger Media ( IDI), up 8.5%, Radio One ( ROIA), up 7.9%, Spanish Broadcasting System ( SBSA), up 6.8%, and Bona Film Group ( BONA), up 5.8%.
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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 $3.27 billion and is part of the services sector. The company has a P/E ratio of 9.3, below the S&P 500 P/E ratio of 17.7. Shares are down 1.4% year to date as of the close of trading on Friday. 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, 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 negative front, NTN Buzztime ( NTN), down 4.9%, John Wiley & Sons ( JW.B), down 4.4%, John Wiley & Sons ( JW.A), down 4.3%, and Pearson ( PSO), down 4.3%, were all laggards within the media industry with Liberty Entertainment Group Series A ( LSTZA) 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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