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

Time Warner ( TWX) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.5%. By the end of trading, Time Warner fell $1.18 (-1.8%) to $63.47 on average volume. Throughout the day, 7,003,967 shares of Time Warner exchanged hands as compared to its average daily volume of 5,684,200 shares. The stock ranged in price between $63.27-$64.25 after having opened the day at $64.24 as compared to the previous trading day's close of $64.65. Other companies within the Services sector that declined today were: Charles & Colvard ( CTHR), down 20.2%, Ku6 Media ( KUTV), down 16.7%, Magal Security Systems ( MAGS), down 15.7% and Document Security Systems ( DSS), down 13.6%.

Time Warner Inc. operates as a media and entertainment company in the United States and internationally. The company operates in four segments: Turner, Home Box Office, Warner Bros., and Time Inc. Time Warner has a market cap of $58.5 billion and is part of the media industry. Shares are down 7.3% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Time Warner a buy, no analysts rate it a sell, and 6 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, General Employment ( JOB), up 14.3%, Conn's ( CONN), up 13.0%, Point.360 ( PTSX), up 12.2% and Genco Shipping & Trading ( GNK), up 10.0% , were all gainers within the services sector with Paychex ( PAYX) 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).

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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