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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Melco Crown Entertainment ( MPEL) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day down 3.1%. By the end of trading, Melco Crown Entertainment fell $2.03 (-5.0%) to $38.96 on average volume. Throughout the day, 3,835,762 shares of Melco Crown Entertainment exchanged hands as compared to its average daily volume of 2,898,700 shares. The stock ranged in price between $38.65-$41.46 after having opened the day at $41.43 as compared to the previous trading day's close of $40.99. Other companies within the Leisure industry that declined today were: Nevada Gold & Casinos ( UWN), down 9.3%, Krispy Kreme Doughnuts ( KKD), down 6.4%, Denny's Corporation ( DENN), down 6.3% and PokerTek ( PTEK), down 6.2%.

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 $22.5 billion and is part of the services sector. The company has a P/E ratio of 53.8, above the S&P 500 P/E ratio of 17.7. Shares are up 4.5% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Melco Crown Entertainment a buy, no analysts rate it a sell, and none 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 robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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