News Corporation (NWSA): 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.

News Corporation ( NWSA) pushed the Media industry higher today making it today's featured media winner. The industry as a whole closed the day up 0.7%. By the end of trading, News Corporation rose 40 cents (1.4%) to $28.35 on average volume. Throughout the day, 22.2 million shares of News Corporation exchanged hands as compared to its average daily volume of 16.5 million shares. The stock ranged in a price between $27.89-$28.39 after having opened the day at $28.03 as compared to the previous trading day's close of $27.94. Other companies within the Media industry that increased today were: Virgin Media ( VMED), up 17.9%, YOU On Demand Holdings ( YOD), up 8.8%, Charter Communications ( CHTR), up 6.3%, and LIN TV Corporation ( TVL), up 5.7%.
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News Corporation operates as a diversified media company worldwide. News Corporation has a market cap of $43.53 billion and is part of the services sector. The company has a P/E ratio of 24.9, above the S&P 500 P/E ratio of 17.7. Shares are up 10.4% year to date as of the close of trading on Monday. Currently there are 18 analysts that rate News Corporation a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates News Corporation as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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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