Time Warner Inc (TWX): Today's Featured Media Winner

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 Media industry higher today making it today's featured media winner. The industry as a whole closed the day up 1.7%. By the end of trading, Time Warner rose $0.68 (1.1%) to $60.43 on light volume. Throughout the day, 4,608,883 shares of Time Warner exchanged hands as compared to its average daily volume of 7,056,500 shares. The stock ranged in a price between $59.98-$60.72 after having opened the day at $60.13 as compared to the previous trading day's close of $59.75. Other companies within the Media industry that increased today were: Point.360 ( PTSX), up 50.3%, Cumulus Media ( CMLS), up 11.7%, NTN Buzztime ( NTN), up 9.1% and Net Servicos De Comunicacao ( NETC), up 8.9%.
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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 $55.6 billion and is part of the services sector. The company has a P/E ratio of 18.3, above the S&P 500 P/E ratio of 17.7. Shares are up 24.9% year to date as of the close of trading on Thursday. Currently there are 17 analysts that rate Time Warner a buy, no analysts rate it a sell, and 8 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, Central European Media ( CETV), down 16.1%, Inuvo ( INUV), down 5.3%, Spanish Broadcasting System ( SBSA), down 3.2% and Educational Development Corporation ( EDUC), down 3.0%.

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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