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 0.5%. By the end of trading, Walt Disney fell $0.69 (-1.1%) to $59.99 on average volume. Throughout the day, 9,122,500 shares of Walt Disney exchanged hands as compared to its average daily volume of 8,397,600 shares. The stock ranged in price between $59.88-$60.67 after having opened the day at $60.60 as compared to the previous trading day's close of $60.68. Other companies within the Media industry that declined today were: Gray Television ( GTN.A), down 7.4%, Entravision Communications Corporation ( EVC), down 6.9%, Digital Cinema Destinations Corp Class A ( DCIN), down 6.0% and LIN TV Corporation ( TVL), down 4.8%.
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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 $109.7 billion and is part of the services sector. The company has a P/E ratio of 19.6, above the S&P 500 P/E ratio of 17.7. Shares are up 22.0% year to date as of the close of trading on Wednesday.

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, Inuvo ( INUV), down 11.6%, Media General ( MEG), down 5.2%, Dolan ( DM), down 4.3% and Charm Communications ( CHRM), down 4.2% , were all gainers within the media industry with DISH Network ( DISH) 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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