Time Warner Inc (TWX): Today's Featured Services 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

Time Warner ( TWX) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 0.9%. By the end of trading, Time Warner rose $1.29 (2.2%) to $58.77 on light volume. Throughout the day, 3,349,563 shares of Time Warner exchanged hands as compared to its average daily volume of 6,224,400 shares. The stock ranged in a price between $57.62-$58.81 after having opened the day at $58.02 as compared to the previous trading day's close of $57.48. Other companies within the Services sector that increased today were: Envoy Capital Group ( ECGI), up 14.8%, SmartPros ( SPRO), up 12.2%, Taminco ( TAM), up 8.9% and National Research Corporation ( NRCIB), up 8.9%.
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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 $53.0 billion and is part of the media industry. The company has a P/E ratio of 18.0, above the S&P 500 P/E ratio of 17.7. Shares are up 20.2% year to date as of the close of trading on Thursday. 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 negative front, Tivo ( TIVO), down 19.0%, Liquidity Service ( LQDT), down 10.4%, Birks & Mayors ( BMJ), down 8.1% and ENGlobal Corporation ( ENG), down 7.9% , were all laggards within the services sector with Lamar Advertising ( LAMR) being today's services sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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