Melco Crown Entertainment Ltd (MPEL): 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

Melco Crown Entertainment ( MPEL) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Melco Crown Entertainment fell $0.28 (-1.1%) to $24.46 on average volume. Throughout the day, 4,683,921 shares of Melco Crown Entertainment exchanged hands as compared to its average daily volume of 5,032,900 shares. The stock ranged in price between $24.20-$25.04 after having opened the day at $24.97 as compared to the previous trading day's close of $24.74. Other companies within the Leisure industry that declined today were: Chipotle Mexican Grill ( CMG), down 3.5%, Chuy's Holdings ( CHUY), down 3.3%, Orbitz Worldwide ( OWW), down 3.3% and Renren ( RENN), down 3.2%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Melco Crown Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment resort facilities in Macau. Melco Crown Entertainment has a market cap of $13.6 billion and is part of the services sector. The company has a P/E ratio of 32.6, above the S&P 500 P/E ratio of 17.7. Shares are up 46.9% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Melco Crown Entertainment a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Melco Crown Entertainment as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Nathans Famous ( NATH), down 11.1%, Carrols Restaurant Group ( TAST), down 10.9%, Fiesta Restaurant Group ( FRGI), down 8.3% and Pizza Inn Holdings ( PZZI), down 7.1% , were all gainers within the leisure industry with Carnival Corporation ( CCL) 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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

null

More from Markets

Don't Panic! The Risk of a Recession This Year Is Low

Don't Panic! The Risk of a Recession This Year Is Low

3 Simple Reasons to Buy Bank Stocks With Juicy Dividends

3 Simple Reasons to Buy Bank Stocks With Juicy Dividends

If Big Tech Companies Disappoint on Earnings, Expect a Stock-Selling Tsunami

If Big Tech Companies Disappoint on Earnings, Expect a Stock-Selling Tsunami

Papa John's Adopts 'Poison Pill' as Fallout from Schnatter's Resignation Spreads

Papa John's Adopts 'Poison Pill' as Fallout from Schnatter's Resignation Spreads

Oil Prices Spike as Trump Fires Angry Tweet Warning Iran of Grave 'Consequences'

Oil Prices Spike as Trump Fires Angry Tweet Warning Iran of Grave 'Consequences'