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 Directv (
DTV) pushed the Media industry higher today making it today's featured media winner. The industry as a whole closed the day up 0.7%. By the end of trading, Directv rose $0.76 (1.2%) to $65.17 on light volume. Throughout the day, 3,956,110 shares of Directv exchanged hands as compared to its average daily volume of 5,579,600 shares. The stock ranged in a price between $64.33-$65.22 after having opened the day at $64.48 as compared to the previous trading day's close of $64.41. Other companies within the Media industry that increased today were:
Liberty Media Corporation (
LMCAD), up 15.6%,
Liberty Media Corporation (
LMCA), up 15.6%,
AirMedia Group (
AMCN), up 9.7% and
Radio One (
ROIAK), up 8.5%.
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DIRECTV provides digital television entertainment in the United States and Latin America. The company engages in acquiring, promoting, selling, and distributing digital entertainment programming primarily through satellite to residential and commercial subscribers. Directv has a market cap of $35.7 billion and is part of the services sector. The company has a P/E ratio of 13.6, below the S&P 500 P/E ratio of 17.7. Shares are up 27.6% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Directv a buy, 1 analyst rates it a sell, and 7 rate it a hold.
TheStreet Ratings rates Directv as a
buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
On the negative front,
Beasley Broadcast Group (
BBGI), down 7.0%,
Gray Television (
GTN), down 5.2%,
Promotora de Informaciones SA/FI (
PRIS), down 4.7% and
Ku6 Media (
KUTV), down 3.7% , were all laggards within the media industry with
Pandora Media (
P) being today's media industry laggard.
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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