Media Industry Underperformer Of The Day: Lions Gate Entertainment Corporation (LGF)

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.

Lions Gate Entertainment Corporation ( LGF) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Lions Gate Entertainment Corporation fell 25 cents (-1.1%) to $23.55 on light volume. Throughout the day, 683,779 shares of Lions Gate Entertainment Corporation exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $23.40-$23.89 after having opened the day at $23.80 as compared to the previous trading day's close of $23.80. Other companies within the Media industry that declined today were: VisionChina Media ( VISN), down 12.1%, Inuvo ( INUV), down 8.1%, Point.360 ( PTSX), down 5.6%, and Dolan ( DM), down 4.1%.
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Lions Gate Entertainment Corp., an entertainment company, engages in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution, new channel platforms, and international distribution and sales activities. Lions Gate Entertainment Corporation has a market cap of $3.15 billion and is part of the services sector. The company has a P/E ratio of 68.5, above the S&P 500 P/E ratio of 17.7. Shares are up 45.1% year to date as of the close of trading on Wednesday. Currently there are nine analysts that rate Lions Gate Entertainment Corporation a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Lions Gate Entertainment Corporation as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

On the positive front, LIN TV Corporation ( TVL), up 10.7%, Gray Television ( GTN.A), up 10.2%, Gray Television ( GTN), up 9.6%, and Sinclair Broadcast Group ( SBGI), up 8.5%, were all gainers within the media industry with Charter Communications ( CHTR) 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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