Directv (DTV): 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.

Directv ( DTV) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Directv fell 66 cents (-1.3%) to $52.23 on average volume. Throughout the day, 4.9 million shares of Directv exchanged hands as compared to its average daily volume of 4.3 million shares. The stock ranged in price between $52.21-$52.91 after having opened the day at $52.84 as compared to the previous trading day's close of $52.89. Other companies within the Media industry that declined today were: Point.360 ( PTSX), down 15.4%, Promotora de Informaciones SA/FI ADR ( PRIS), down 6.1%, Lee ( LEE), down 4.4%, and Insignia Systems ( ISIG), down 2.5%.
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DIRECTV provides digital television entertainment primarily in the United States and Latin America. The company engages in acquiring, promoting, selling, and distributing digital entertainment programming primarily via satellite to residential and commercial subscribers. Directv has a market cap of $32.06 billion and is part of the services sector. The company has a P/E ratio of 13.1, below the S&P 500 P/E ratio of 17.7. Shares are up 5.8% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Directv a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates Directv as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Radio One ( ROIA), up 32.3%, Radio One Inc. Class D ( ROIAK), up 13.9%, Gray Television ( GTN.A), up 7.8%, and Monster Worldwide ( MWW), up 6.3%, were all gainers within the media industry with Sirius XM Radio ( SIRI) 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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