Melco Crown Entertainment Ltd (MPEL): Today's Featured Leisure Winner

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 higher today making it today's featured leisure winner. The industry as a whole closed the day down 0.4%. By the end of trading, Melco Crown Entertainment rose $0.39 (1.7%) to $23.78 on light volume. Throughout the day, 2,519,082 shares of Melco Crown Entertainment exchanged hands as compared to its average daily volume of 4,126,600 shares. The stock ranged in a price between $23.51-$23.91 after having opened the day at $23.67 as compared to the previous trading day's close of $23.39. Other companies within the Leisure industry that increased today were: Krispy Kreme Doughnuts ( KKD), up 21.5%, Pinnacle Entertainment ( PNK), up 6.2%, PokerTek ( PTEK), up 5.9% and Canterbury Park Holding Corporation ( CPHC), up 4.2%.
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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 $13.0 billion and is part of the services sector. The company has a P/E ratio of 30.9, above the S&P 500 P/E ratio of 17.7. Shares are up 39.7% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Melco Crown Entertainment a buy, no analysts rate it a sell, and 3 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, largely solid financial position with reasonable debt levels by most measures 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 negative front, Cosi ( COSI), down 6.0%, Morgans Hotel Group Company ( MHGC), down 5.6%, Pizza Inn Holdings ( PZZI), down 4.6% and Marcus Corporation ( MCS), down 4.5% , were all laggards within the leisure industry with Las Vegas Sands ( LVS) being today's leisure industry laggard.

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).

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