3 Stocks Driving The Media 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 19 points (0.1%) at 17,098 as of Friday, Aug. 29, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,137 issues advancing vs. 890 declining with 157 unchanged.

The Media industry as a whole closed the day up 0.3% versus the S&P 500, which was up 0.3%. Top gainers within the Media industry included Ku6 Media ( KUTV), up 3.5%, Hemisphere Media Group ( HMTV), up 1.6%, Crown Media Holdings ( CRWN), up 2.1%, Salem Communications ( SALM), up 2.5% and Inuvo ( INUV), up 9.1%.

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

Salem Communications ( SALM) is one of the companies that pushed the Media industry higher today. Salem Communications was up $0.20 (2.5%) to $8.29 on heavy volume. Throughout the day, 70,436 shares of Salem Communications exchanged hands as compared to its average daily volume of 29,600 shares. The stock ranged in a price between $7.95-$8.35 after having opened the day at $8.02 as compared to the previous trading day's close of $8.09.

Salem Communications Corporation operates as a multi-media company in the United States. It operates through Radio Broadcast, Internet, and Publishing segments. Salem Communications has a market cap of $162.3 million and is part of the services sector. Shares are down 7.0% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Salem Communications 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 Salem Communications as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and feeble growth in the company's earnings per share.

Highlights from TheStreet Ratings analysis on SALM go as follows:

  • SALM's revenue growth has slightly outpaced the industry average of 11.9%. Since the same quarter one year prior, revenues rose by 14.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 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.
  • 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 75.7% when compared to the same quarter one year ago, falling from $5.20 million to $1.26 million.
  • The gross profit margin for SALEM COMMUNICATIONS CORP is currently lower than what is desirable, coming in at 26.55%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.84% significantly trails the industry average.

You can view the full analysis from the report here: Salem Communications 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, Crown Media Holdings ( CRWN) was up $0.07 (2.1%) to $3.45 on average volume. Throughout the day, 64,000 shares of Crown Media Holdings exchanged hands as compared to its average daily volume of 68,600 shares. The stock ranged in a price between $3.34-$3.45 after having opened the day at $3.38 as compared to the previous trading day's close of $3.38.

Crown Media Holdings, Inc., through its wholly-owned subsidiary, Crown Media United States, LLC, owns, operates, and distributes pay television networks for adults and families in the United States. The company operates Hallmark Channel and Hallmark Movie Channel. Crown Media Holdings has a market cap of $1.2 billion and is part of the services sector. Shares are down 2.5% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Crown Media Holdings 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 Crown Media Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in stock price during the past year, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from TheStreet Ratings analysis on CRWN go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.9%. Since the same quarter one year prior, revenues slightly increased by 8.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $32.38 million or 17.67% when compared to the same quarter last year. In addition, CROWN MEDIA HOLDINGS INC has also modestly surpassed the industry average cash flow growth rate of 13.29%.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The gross profit margin for CROWN MEDIA HOLDINGS INC is rather high; currently it is at 57.48%. Regardless of CRWN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CRWN's net profit margin of 16.39% compares favorably to the industry average.
  • Even though the current debt-to-equity ratio is 1.01, it is still below the industry average, suggesting that this level of debt is acceptable within the Media industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.36 is sturdy.

You can view the full analysis from the report here: Crown Media Holdings 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.

Ku6 Media ( KUTV) was another company that pushed the Media industry higher today. Ku6 Media was up $0.05 (3.5%) to $1.53 on light volume. Throughout the day, 20,261 shares of Ku6 Media exchanged hands as compared to its average daily volume of 88,400 shares. The stock ranged in a price between $1.46-$1.53 after having opened the day at $1.47 as compared to the previous trading day's close of $1.48.

Ku6 Media Co., Ltd. is engaged in the online video business in the People's Republic of China. Ku6 Media has a market cap of $71.9 million and is part of the services sector. Shares are down 46.2% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Ku6 Media a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Ku6 Media as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on KUTV go as follows:

  • KU6 MEDIA CO LTD -ADR has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, KU6 MEDIA CO LTD -ADR reported poor results of -$0.73 versus -$0.20 in the prior year.
  • 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 Internet Software & Services industry. The net income has significantly decreased by 163.9% when compared to the same quarter one year ago, falling from -$1.67 million to -$4.41 million.
  • The share price of KU6 MEDIA CO LTD -ADR has not done very well: it is down 12.87% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • KUTV, with its decline in revenue, underperformed when compared the industry average of 19.9%. Since the same quarter one year prior, revenues slightly dropped by 8.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Net operating cash flow has significantly increased by 210.12% to $2.50 million when compared to the same quarter last year. In addition, KU6 MEDIA CO LTD -ADR has also vastly surpassed the industry average cash flow growth rate of 17.71%.

You can view the full analysis from the report here: Ku6 Media 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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