Six Flags Entertainment Corp (SIX): Today's Featured Leisure 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

Six Flags Entertainment ( SIX) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day up 1.1%. By the end of trading, Six Flags Entertainment fell $2.18 (-2.8%) to $74.93 on average volume. Throughout the day, 666,275 shares of Six Flags Entertainment exchanged hands as compared to its average daily volume of 475,200 shares. The stock ranged in price between $74.74-$78.03 after having opened the day at $77.66 as compared to the previous trading day's close of $77.11. Other companies within the Leisure industry that declined today were: PokerTek ( PTEK), down 6.2%, Empire Resorts ( NYNY), down 4.0%, Home Inns & Hotels Management ( HMIN), down 3.3% and Brinker International ( EAT), down 2.9%.
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Six Flags Entertainment Corporation owns and operates regional theme, water, and zoological parks. The company's parks offer various state-of-the-art and traditional thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets. Six Flags Entertainment has a market cap of $3.5 billion and is part of the services sector. The company has a P/E ratio of 11.4, below the S&P 500 P/E ratio of 17.7. Shares are up 26.0% year to date as of the close of trading on Monday.

TheStreet Ratings rates Six Flags Entertainment as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Caesars Entertainment ( CZR), down 27.3%, Isle of Capri Casinos ( ISLE), down 10.7%, Good Times Restaurants ( GTIM), down 4.8% and Pinnacle Entertainment ( PNK), down 4.7% , were all gainers within the leisure industry with Starbucks Corporation ( SBUX) being today's featured leisure industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).

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