3 Media Stocks Pushing The Industry Higher

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 26 points (0.2%) at 16,807 as of Tuesday, June 17, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,847 issues advancing vs. 1,167 declining with 138 unchanged.

The Media industry as a whole closed the day up 0.7% versus the S&P 500, which was up 0.2%. Top gainers within the Media industry included Radio One ( ROIA), up 3.8%, John Wiley & Sons ( JW.B), up 5.3%, Point 360 ( PTSX), up 7.8%, NTN Buzztime ( NTN), up 2.6% and Inuvo ( INUV), up 3.3%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Inuvo ( INUV) is one of the companies that pushed the Media industry higher today. Inuvo was up $0.03 (3.3%) to $0.94 on light volume. Throughout the day, 159,892 shares of Inuvo exchanged hands as compared to its average daily volume of 281,400 shares. The stock ranged in a price between $0.90-$0.98 after having opened the day at $0.92 as compared to the previous trading day's close of $0.91.

Inuvo, Inc., together with its subsidiaries, operates as an Internet marketing and technology company that delivers advertisements to Websites and applications reaching desktop and mobile devices in the United States. It operates in two segments, Partner Network, and Owned and Operated Network. Inuvo has a market cap of $22.0 million and is part of the services sector. Shares are down 28.6% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Inuvo a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Inuvo as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and generally higher debt management risk.

Highlights from TheStreet Ratings analysis on INUV go as follows:

  • INUVO INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, INUVO INC turned its bottom line around by earning $0.01 versus -$0.35 in the prior year. This year, the market expects an improvement in earnings ($0.05 versus $0.01).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 331.9% when compared to the same quarter one year prior, rising from -$0.29 million to $0.68 million.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • INUV's debt-to-equity ratio of 0.93 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.49 is very low and demonstrates very weak liquidity.
  • Net operating cash flow has decreased to $0.38 million or 41.80% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Inuvo Ratings Report

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

At the close, NTN Buzztime ( NTN) was up $0.01 (2.6%) to $0.56 on light volume. Throughout the day, 22,716 shares of NTN Buzztime exchanged hands as compared to its average daily volume of 135,800 shares. The stock ranged in a price between $0.55-$0.57 after having opened the day at $0.55 as compared to the previous trading day's close of $0.55.

NTN Buzztime, Inc. provides an entertainment and marketing services platform for hospitality venues that offer games, events, and entertainment experiences in the United States and Canada. NTN Buzztime has a market cap of $52.2 million and is part of the services sector. Shares are down 9.5% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate NTN Buzztime a buy, no analysts rate it a sell, and none rate it a hold.

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

TheStreet Ratings rates NTN Buzztime as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on NTN go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 75.9% when compared to the same quarter one year ago, falling from -$0.37 million to -$0.65 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Media industry and the overall market, NTN BUZZTIME INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.20 million or 222.89% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for NTN BUZZTIME INC is rather high; currently it is at 68.88%. Regardless of NTN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NTN's net profit margin of -10.11% significantly underperformed when compared to the industry average.
  • NTN BUZZTIME INC reported flat earnings per share in the most recent quarter. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, NTN BUZZTIME INC continued to lose money by earning -$0.01 versus -$0.02 in the prior year.

You can view the full analysis from the report here: NTN Buzztime Ratings Report

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

Radio One ( ROIA) was another company that pushed the Media industry higher today. Radio One was up $0.17 (3.8%) to $4.60 on average volume. Throughout the day, 2,402 shares of Radio One exchanged hands as compared to its average daily volume of 3,200 shares. The stock ranged in a price between $4.47-$4.61 after having opened the day at $4.52 as compared to the previous trading day's close of $4.43.

Radio One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Reach Media, Internet, and Cable Television. Radio One has a market cap of $10.7 million and is part of the services sector. Shares are up 20.5% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Radio One a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Radio One as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and generally high debt management risk.

Highlights from TheStreet Ratings analysis on ROIA go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Media industry. The net income has significantly decreased by 39.1% when compared to the same quarter one year ago, falling from -$18.11 million to -$25.18 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Media industry and the overall market, RADIO ONE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is very high at 15.39 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.68, which shows the ability to cover short-term cash needs.
  • The gross profit margin for RADIO ONE INC is rather high; currently it is at 68.24%. Regardless of ROIA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ROIA's net profit margin of -22.67% significantly underperformed when compared to the industry average.
  • RADIO ONE INC's earnings per share declined by 39.5% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, RADIO ONE INC continued to lose money by earning -$1.30 versus -$1.33 in the prior year.

You can view the full analysis from the report here: Radio One Ratings Report

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

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.

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