Starz Inc (STRZA): Media's Featured Daily 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.

Starz ( STRZA) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Starz fell 42 cents (-1.9%) to $21.09 on light volume. Throughout the day, 1.7 million shares of Starz exchanged hands as compared to its average daily volume of 5.3 million shares. The stock ranged in price between $20.99-$21.67 after having opened the day at $21.60 as compared to the previous trading day's close of $21.51. Other companies within the Media industry that declined today were: Promotora de Informaciones SA/FI ( PRIS), down 5.7%, McClatchy Company ( MNI), down 5.2%, YOU On Demand Holdings ( YOD), down 4.4%, and Dolan ( DM), down 4.3%.
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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 $2.47 billion and is part of the services sector. The company has a P/E ratio of 1.5, below the S&P 500 P/E ratio of 17.7. Shares are up 62.5% year to date as of the close of trading on Monday. 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 positive front, Charm Communications ( CHRM), up 10.2%, Media General ( MEG), up 8.1%, Daily Journal Corporation ( DJCO), up 7%, and VisionChina Media ( VISN), up 5%, were all gainers within the media industry with Walt Disney ( DIS) 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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