News Corporation (NWS): Today's Featured Services 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

News Corporation ( NWS) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.7%. By the end of trading, News Corporation fell $0.39 (-1.2%) to $31.41 on heavy volume. Throughout the day, 7,205,347 shares of News Corporation exchanged hands as compared to its average daily volume of 3,269,000 shares. The stock ranged in price between $31.14-$31.73 after having opened the day at $31.32 as compared to the previous trading day's close of $31.80. Other companies within the Services sector that declined today were: UniTek Global Services ( UNTK), down 14.5%, Myriad Genetics ( MYGN), down 13.8%, FreeSeas ( FREE), down 13.1% and DLH Holdings ( DLHC), down 12.4%.
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News Corporation operates as a diversified media company worldwide. News Corporation has a market cap of $24.8 billion and is part of the media industry. The company has a P/E ratio of 12.1, below the S&P 500 P/E ratio of 17.7. Shares are up 21.2% year to date as of the close of trading on Thursday. Currently there are 2 analysts that rate News Corporation a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates News Corporation 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, notable return on equity, attractive valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Restoration Hardware Holdings ( RH), down 16.1%, Hastings Entertainment ( HAST), down 14.3%, QKL Stores ( QKLS), down 14.1% and China Distance Education Holdings ( DL), down 11.3% , were all gainers within the services sector with Cablevision Systems ( CVC) being today's featured services sector leader.

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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