3 Stocks Boosting 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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 78.22 points (-0.4%) at 17,774 as of Tuesday, Dec. 9, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,227 issues advancing vs. 1,763 declining with 144 unchanged.

The Media industry as a whole closed the day up 0.3% versus the S&P 500, which was down 0.2%. Top gainers within the Media industry included NTN Buzztime ( NTN), up 4.2%, RLJ Entertainment ( RLJE), up 3.0%, Inuvo ( INUV), up 4.3%, Crown Media Holdings ( CRWN), up 1.7% and Salem Communications ( SALM), up 1.7%.

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 $0.05 (4.3%) to $1.22 on light volume. Throughout the day, 72,466 shares of Inuvo exchanged hands as compared to its average daily volume of 186,400 shares. The stock ranged in a price between $1.12-$1.25 after having opened the day at $1.12 as compared to the previous trading day's close of $1.17.

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 $29.5 million and is part of the services sector. Shares are down 4.6% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate 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 notable return on equity, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on INUV go as follows:

  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, INUVO INC's return on equity exceeds that of both the industry average and the S&P 500.
  • INUVO INC's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. 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 ($0.08 versus $0.01).
  • 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 37.0% when compared to the same quarter one year ago, falling from $0.64 million to $0.40 million.
  • Net operating cash flow has declined marginally to $1.13 million or 8.04% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly 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, RLJ Entertainment ( RLJE) was up $0.09 (3.0%) to $3.06 on light volume. Throughout the day, 439 shares of RLJ Entertainment exchanged hands as compared to its average daily volume of 11,900 shares. The stock ranged in a price between $3.03-$3.06 after having opened the day at $3.03 as compared to the previous trading day's close of $2.97.

RLJ Entertainment, Inc., an entertainment company, acquires content rights in British episodic mystery and drama, urban programming, and full-length motion pictures. It operates through three segments: Intellectual Property Licensing, Wholesale, and Direct-to-Consumer. RLJ Entertainment has a market cap of $38.6 million and is part of the services sector. Shares are down 38.0% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate RLJ Entertainment 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 RLJ Entertainment as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, poor profit margins, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on RLJE go as follows:

  • Although RLJE's debt-to-equity ratio of 2.15 is very high, it is currently less than that of the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Media industry and the overall market, RLJ ENTERTAINMENT INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for RLJ ENTERTAINMENT INC is rather low; currently it is at 24.17%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -21.00% is significantly below that of the industry average.
  • RLJ ENTERTAINMENT INC reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, RLJ ENTERTAINMENT INC reported poor results of -$2.30 versus -$0.49 in the prior year.
  • RLJE's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 30.49%, which is also worse than the performance of the S&P 500 Index. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

You can view the full analysis from the report here: RLJ Entertainment 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.

NTN Buzztime ( NTN) was another company that pushed the Media industry higher today. NTN Buzztime was up $0.02 (4.2%) to $0.44 on average volume. Throughout the day, 53,106 shares of NTN Buzztime exchanged hands as compared to its average daily volume of 64,900 shares. The stock ranged in a price between $0.42-$0.44 after having opened the day at $0.44 as compared to the previous trading day's close of $0.42.

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 $34.6 million and is part of the services sector. Shares are down 40.5% 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.

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 462.0% when compared to the same quarter one year ago, falling from -$0.23 million to -$1.32 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 -$1.45 million or 300.00% 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 currently very high, coming in at 71.49%. 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 -21.89% significantly underperformed when compared to the industry average.
  • NTN BUZZTIME INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. 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.

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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