Walt Disney Co (DIS): 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.

Walt Disney ( DIS) 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, Walt Disney fell 75 cents (-1.3%) to $56.83 on light volume. Throughout the day, five million shares of Walt Disney exchanged hands as compared to its average daily volume of 8.7 million shares. The stock ranged in price between $56.75-$57.19 after having opened the day at $57.04 as compared to the previous trading day's close of $57.58. Other companies within the Media industry that declined today were: ChinaNet Online Holdings ( CNET), down 11.8%, Millennial Media ( MM), down 7.3%, NTN Buzztime ( NTN), down 5.6%, and YOU On Demand Holdings ( YOD), down 5%.
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The Walt Disney Company operates as an entertainment company worldwide. Its Media Networks segment engages in broadcast television network, television production and distribution, television stations, broadcast radio networks and stations, and publishing and digital operations. Walt Disney has a market cap of $104.26 billion and is part of the services sector. The company has a P/E ratio of 18.6, above the S&P 500 P/E ratio of 17.7. Shares are up 15.6% year to date as of the close of trading on Friday. Currently there are 15 analysts that rate Walt Disney a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Walt Disney as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Dex One ( DEXO), up 11.4%, Charter Communications ( CHTR), up 8.8%, Digital Cinema Destinations Corp Class A ( DCIN), up 8.1%, and Salem Communications Corporation ( SALM), up 6.6%, were all gainers within the media industry with Time Warner Cable ( TWC) 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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