Time Warner Inc (TWX): Services' Spotlighted Daily Leader

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 Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 1.6%. By the end of trading, Time Warner rose 76 cents (1.3%) to $59.56 on average volume. Throughout the day, six million shares of Time Warner exchanged hands as compared to its average daily volume of 6.8 million shares. The stock ranged in a price between $58.70-$59.74 after having opened the day at $58.88 as compared to the previous trading day's close of $58.80. Other companies within the Services sector that increased today were: Era Group ( ERA), up 17.9%, Chanticleer Holdings ( HOTR), up 14.9%, Pizza Inn Holdings ( PZZI), up 14.7%, and Mecox Lane ( MCOX), up 13.2%.
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Time Warner Inc. operates as a media and entertainment company in the United States and internationally. The company operates in three segments: Networks, Film and TV Entertainment, and Publishing. Time Warner has a market cap of $54.55 billion and is part of the media industry. The company has a P/E ratio of 18.9, above the S&P 500 P/E ratio of 17.7. Shares are up 22.9% year to date as of the close of trading on Tuesday. Currently there are 17 analysts that rate Time Warner a buy, no analysts rate it a sell, and eight 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 expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Titan Machinery ( TITN), down 14%, ENGlobal Corporation ( ENG), down 11.9%, Newlead Holdings ( NEWL), down 11.7%, and China Jo-Jo Drugstores ( CJJD), down 10.7%, were all laggards within the services sector with MSC Industrial Direct ( MSM) being today's services sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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