Discovery Communications Inc (DISCA): 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

Discovery Communications ( DISCA) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Discovery Communications fell $1.15 (-1.5%) to $77.87 on heavy volume. Throughout the day, 3,119,830 shares of Discovery Communications exchanged hands as compared to its average daily volume of 1,483,600 shares. The stock ranged in price between $75.67-$78.39 after having opened the day at $77.30 as compared to the previous trading day's close of $79.02. Other companies within the Media industry that declined today were: Entravision Communications Corporation ( EVC), down 5.6%, Point.360 ( PTSX), down 5.3%, Pandora Media ( P), down 5.0% and Gray Television ( GTN), down 5.0%.
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Discovery Communications, Inc. operates as a non fiction media company worldwide. It operates through three segments: U.S. Networks, International Networks, and Education. The company provides original and purchased content across various distribution platforms. Discovery Communications has a market cap of $11.5 billion and is part of the services sector. The company has a P/E ratio of 31.6, above the S&P 500 P/E ratio of 17.7. Shares are up 24.8% year to date as of the close of trading on Monday. Currently there are 7 analysts that rate Discovery Communications a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Discovery Communications as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Liberty Media Corporation ( LMCAD), down 9.4%, Liberty Media Corporation ( LMCA), down 9.4%, Radio One ( ROIAK), down 8.3% and Millennial Media ( MM), down 5.8% , were all gainers within the media industry with Directv ( DTV) 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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