McGraw-Hill Companies Incorporated (MHP): 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.

McGraw-Hill Companies Incorporated ( MHP) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day down 0.3%. By the end of trading, McGraw-Hill Companies Incorporated fell 80 cents (-1.8%) to $43.81 on heavy volume. Throughout the day, 9.6 million shares of McGraw-Hill Companies Incorporated exchanged hands as compared to its average daily volume of 3.3 million shares. The stock ranged in price between $43.30-$44.99 after having opened the day at $44.53 as compared to the previous trading day's close of $44.61. Other companies within the Media industry that declined today were: Inuvo ( INUV), down 12.1%, Nexstar Broadcasting Group ( NXST), down 8.3%, McClatchy Company ( MNI), down 8%, and Monster Worldwide ( MWW), down 7%.
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The McGraw-Hill Companies, Inc. provides information services for the financial, commodities and commercial, and education markets worldwide. McGraw-Hill Companies Incorporated has a market cap of $12.47 billion and is part of the services sector. The company has a P/E ratio of 16.2, below the S&P 500 P/E ratio of 17.7. Shares are down 17.8% year to date as of the close of trading on Wednesday. Currently there are six analysts that rate McGraw-Hill Companies Incorporated a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates McGraw-Hill Companies Incorporated as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, largely solid financial position with reasonable debt levels by most measures 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, Envoy Capital Group ( ECGI), up 6.1%, Cablevision Systems ( CVC), up 5.6%, Promotora de Informaciones SA/FI ADR ( PRIS), up 4.7%, and AirMedia Group ( AMCN), up 4.5%, were all gainers within the media industry with Starz ( STRZA) 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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