Six Flags Entertainment Corp (SIX): Today's Featured Leisure 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

Six Flags Entertainment ( SIX) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day up 0.5%. By the end of trading, Six Flags Entertainment fell $0.81 (-1.1%) to $74.12 on light volume. Throughout the day, 292,002 shares of Six Flags Entertainment exchanged hands as compared to its average daily volume of 395,800 shares. The stock ranged in price between $73.88-$75.31 after having opened the day at $75.20 as compared to the previous trading day's close of $74.93. Other companies within the Leisure industry that declined today were: Asia Entertainment & Resources ( AERL), down 5.3%, PokerTek ( PTEK), down 5.0%, Jamba ( JMBA), down 4.9% and Nevada Gold & Casinos ( UWN), down 4.7%.
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Six Flags Entertainment Corporation owns and operates regional theme, water, and zoological parks. The company's parks offer various state-of-the-art and traditional thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets. Six Flags Entertainment has a market cap of $3.6 billion and is part of the services sector. The company has a P/E ratio of 10.5, below the S&P 500 P/E ratio of 17.7. Shares are up 22.4% year to date as of the close of trading on Friday. Currently there are 3 analysts that rate Six Flags Entertainment a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Six Flags Entertainment as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Chanticleer Holdings ( HOTR), down 17.8%, Orbitz Worldwide ( OWW), down 6.8%, Morgans Hotel Group Company ( MHGC), down 4.8% and China Lodging Group ( HTHT), down 4.8% , were all gainers within the leisure industry with Priceline.com ( PCLN) being today's featured leisure industry leader.

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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