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 0.4%. By the end of trading, Directv fell 65 cents (-1.1%) to $56.59 on average volume. Throughout the day, 5.2 million shares of Directv exchanged hands as compared to its average daily volume of 5.7 million shares. The stock ranged in price between $56.57-$57.64 after having opened the day at $57.16 as compared to the previous trading day's close of $57.24. Other companies within the Media industry that declined today were: Beasley Broadcast Group ( BBGI), down 11.1%, Envoy Capital Group ( ECGI), down 5.1%, VisionChina Media ( VISN), down 4.9%, and Millennial Media ( MM), down 4.2%.
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DIRECTV provides digital television entertainment in the United States and Latin America. The company engages in acquiring, promoting, selling, and distributing digital entertainment programming primarily through satellite to residential and commercial subscribers. Directv has a market cap of $32.46 billion and is part of the services sector. The company has a P/E ratio of 12.4, below the S&P 500 P/E ratio of 17.7. Shares are up 13.4% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Directv a buy, one analyst rates it a sell, and seven rate it a hold.

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

On the positive front, Gray Television ( GTN), up 7.1%, Spanish Broadcasting System ( SBSA), up 6.6%, Media General ( MEG), up 5.1%, and Dex One ( DEXO), up 4.9%, were all gainers within the media industry with Liberty Media Corporation ( LMCA) 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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