Time Warner Inc (TWX): 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

Time Warner ( TWX) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Time Warner fell $0.64 (-1.1%) to $60.07 on light volume. Throughout the day, 4,871,256 shares of Time Warner exchanged hands as compared to its average daily volume of 6,526,500 shares. The stock ranged in price between $59.76-$61.00 after having opened the day at $60.72 as compared to the previous trading day's close of $60.71. Other companies within the Media industry that declined today were: Spanish Broadcasting System ( SBSA), down 8.9%, VisionChina Media ( VISN), down 8.7%, Promotora de Informaciones SA/FI ( PRIS), down 6.2% and Gray Television ( GTN.A), down 6.2%.
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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 $56.6 billion and is part of the services sector. The company has a P/E ratio of 18.7, above the S&P 500 P/E ratio of 17.7. Shares are up 26.9% year to date as of the close of trading on Friday. Currently there are 16 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, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Liberty Media Corporation ( LMCAD), down 14.1%, Liberty Media Corporation ( LMCA), down 14.1%, NTN Buzztime ( NTN), down 7.5% and Inuvo ( INUV), down 7.1%.

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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