Directv (DTV): 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

Directv ( DTV) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day down 0.7%. By the end of trading, Directv fell $1.03 (-1.6%) to $63.97 on light volume. Throughout the day, 3,485,144 shares of Directv exchanged hands as compared to its average daily volume of 5,356,300 shares. The stock ranged in price between $63.55-$65.20 after having opened the day at $64.93 as compared to the previous trading day's close of $65.00. Other companies within the Media industry that declined today were: Entravision Communications Corporation ( EVC), down 9.4%, Point.360 ( PTSX), down 6.5%, Gray Television ( GTN), down 5.5% and Digital Cinema Destinations Corp Class A ( DCIN), down 5.2%.
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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 $36.0 billion and is part of the services sector. The company has a P/E ratio of 13.7, below the S&P 500 P/E ratio of 17.7. Shares are up 28.5% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate Directv a buy, 1 analyst rates it a sell, and 6 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, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Central European Media ( CETV), down 16.3%, Liberty Media Corporation ( LMCAD), down 13.0%, Liberty Media Corporation ( LMCA), down 13.0% and Envoy Capital Group ( ECGI), down 12.7% , were all gainers within the media industry with Pandora Media ( P) 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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