Starz Inc (STRZA): 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.

Starz ( STRZA) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Starz fell $94.51 (-85.3%) to $16.24 on light volume. Throughout the day, 3.9 million shares of Starz exchanged hands as compared to its average daily volume of 11.5 million shares. The stock ranged in price between $15.99-$16.41 after having opened the day at $16.30 as compared to the previous trading day's close of $110.75. Other companies within the Media industry that declined today were: Liberty Media Corporation ( LMCA), down 85.3%, ChinaNet Online Holdings ( CNET), down 10.3%, NTN Buzztime ( NTN), down 7%, and YOU On Demand Holdings ( YOD), down 6%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Starz, LLC, through its subsidiaries, creates and distributes entertainment programs. It operates movie channels, as well as involves in the production and distribution of animated and live-action programming. Starz has a market cap of $1.78 billion and is part of the services sector. The company has a P/E ratio of 8.4, below the S&P 500 P/E ratio of 17.7. Shares are unchanged year to date as of the close of trading on Friday. Currently there are three analysts that rate Starz a buy, one analyst rates it a sell, and four rate it a hold.

TheStreet Ratings rates Starz as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Owners of Cable TV Channel EPIX May Take It Public

Epix Could Go Public in Wake of Lions Gate's Starz Acquisition

5 Stocks Insiders Love Right Now

AT&T to Unveil DirecTV Now in Race for Streaming TV Supremacy

DirecTV Now Isn't a 'Skinny Bundle' Even as It Aims at Cord-Cutting Millennials