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.
Time Warner (
TWX) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day down 1%. By the end of trading, Time Warner fell 62 cents (-1.2%) to $52.61 on average volume. Throughout the day, six million shares of Time Warner exchanged hands as compared to its average daily volume of 6.2 million shares. The stock ranged in price between $52.33-$53.08 after having opened the day at $52.86 as compared to the previous trading day's close of $53.23. Other companies within the Media industry that declined today were:
Valassis Communications (
VCI), down 10.2%,
LIN TV Corporation (
TVL), down 7.9%,
Radio One Inc. Class D (
ROIAK), down 6.4%, and
Dex One (
DEXO), down 4.3%.
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Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Film and TV Entertainment, and Publishing. Time Warner has a market cap of $50.93 billion and is part of the services sector. The company has a P/E ratio of 16.4, below the S&P 500 P/E ratio of 17.7. Shares are up 12.5% year to date as of the close of trading on Wednesday. Currently there are 15 analysts that rate Time Warner a buy, no analysts rate it a sell, and nine rate it a hold.
TheStreet Ratings rates Time Warner as a
buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and attractive 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).
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