3 Media Stocks Driving 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 4 points (0.0%) at 17,515 as of Tuesday, Jan. 20, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,216 issues advancing vs. 1,900 declining with 118 unchanged.

The Media industry as a whole closed the day down 0.7% versus the S&P 500, which was up 0.2%. Top gainers within the Media industry included Gray Television ( GTN.A), up 3.0%, NTN Buzztime ( NTN), up 2.1%, Tiger Media ( IDI), up 1.7%, Inuvo ( INUV), up 2.8% and Hong Kong Television Network ( HKTV), up 1.8%.

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 (2.8%) to $1.12 on light volume. Throughout the day, 38,067 shares of Inuvo exchanged hands as compared to its average daily volume of 96,400 shares. The stock ranged in a price between $1.04-$1.15 after having opened the day at $1.09 as compared to the previous trading day's close of $1.09.

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 $25.7 million and is part of the services sector. Shares are down 16.1% year-to-date as of the close of trading on Friday. 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 sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on INUV 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 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.
  • The share price of INUVO INC has not done very well: it is down 16.43% 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.
  • The revenue fell significantly faster than the industry average of 28.8%. Since the same quarter one year prior, revenues fell by 10.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • INUV's debt-to-equity ratio of 0.62 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. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.78 is weak.

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, Tiger Media ( IDI) was up $0.02 (1.7%) to $1.20 on heavy volume. Throughout the day, 135,188 shares of Tiger Media exchanged hands as compared to its average daily volume of 66,000 shares. The stock ranged in a price between $1.03-$1.22 after having opened the day at $1.16 as compared to the previous trading day's close of $1.18.

Tiger Media, Inc., a multi-platform media company, provides advertising services in the out-of-home advertising industry in the People's Republic of China. Tiger Media has a market cap of $43.0 million and is part of the services sector. Shares are up 43.9% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Tiger Media 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 Tiger Media as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, 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 IDI 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 46.5% when compared to the same quarter one year ago, falling from -$0.54 million to -$0.79 million.
  • 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, TIGER MEDIA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for TIGER MEDIA INC is currently extremely low, coming in at 13.99%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -89.30% is significantly below that of the industry average.
  • TIGER MEDIA INC reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, TIGER MEDIA INC reported poor results of -$0.12 versus -$0.03 in the prior year.
  • IDI has underperformed the S&P 500 Index, declining 14.97% from its price level of one year ago. 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.

You can view the full analysis from the report here: Tiger 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.

NTN Buzztime ( NTN) was another company that pushed the Media industry higher today. NTN Buzztime was up $0.01 (2.1%) to $0.48 on light volume. Throughout the day, 10,515 shares of NTN Buzztime exchanged hands as compared to its average daily volume of 75,600 shares. The stock ranged in a price between $0.45-$0.48 after having opened the day at $0.47 as compared to the previous trading day's close of $0.47.

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 $43.4 million and is part of the services sector. Shares are up 6.8% year-to-date as of the close of trading on Friday. 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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