Starz Inc (STRZA): 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.

Starz ( STRZA) pushed the Media industry higher today making it today's featured media winner. The industry as a whole closed the day down 0.2%. By the end of trading, Starz rose 24 cents (1.2%) to $20.94 on light volume. Throughout the day, 3.2 million shares of Starz exchanged hands as compared to its average daily volume of 7.2 million shares. The stock ranged in a price between $20.52-$21.03 after having opened the day at $20.67 as compared to the previous trading day's close of $20.69. Other companies within the Media industry that increased today were: YOU On Demand Holdings ( YOD), up 14.1%, ChinaNet Online Holdings ( CNET), up 10.5%, Gray Television ( GTN.A), up 7.4%, and Media General ( MEG), up 5.6%.
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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 $2.29 billion and is part of the services sector. The company has a P/E ratio of 1.4, below the S&P 500 P/E ratio of 17.7. Shares are up 56.3% year to date as of the close of trading on Thursday. Currently there is one analyst that rates Starz a buy, two analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Starz as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

On the negative front, AirMedia Group ( AMCN), down 13.8%, Lee ( LEE), down 8.4%, Envoy Capital Group ( ECGI), down 8%, and Emmis Communications ( EMMS), down 7%, were all laggards within the media industry with Time Warner ( TWX) being today's media industry laggard.

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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