Media Stocks Push Higher Amid Market Volatility

Strategic Insights -

As the markets experience a downturn, select media stocks are rising, leading to a notable anomaly in the industry's performance. Top performers include Time Warner Cable, Walt Disney, and Netflix, which have seen significant gains despite the market's decline. As of Monday, August 24, 2015, the Dow Jones Industrial Average was trading down 237 points, or 1.4%, at 16,223. The media industry specifically has dropped 1.5%, while the S&P 500 has declined by 1.1%.

Key Takeaways:

  • Time Warner Cable has increased by 0.2% to $184.01, with 2 million shares exchanged, compared to its average daily volume of 2.7 million shares.
  • Walt Disney has risen by 0.0% to $98.87, with 17.8 million shares traded, exceeding its average daily volume of 8.6 million shares.
  • Netflix has surged by 1.9% to $105.93, with 36.2 million shares exchanged, surpassing its average daily volume of 18.2 million shares.
  • These companies' stock prices have been driven by their revenue growth, solid stock performances, and notable return on equity.
  • TheStreet Ratings has designated Time Warner Cable and Walt Disney as buy stocks, while Netflix is rated as hold.
  • Netflix's strengths include robust revenue growth and expanding profit margins, but the company faces weaknesses such as deteriorating net income and disappointing return on equity.

Statistics:

  • The Dow Jones Industrial Average is trading down 237 points, or 1.4%, at 16,223.
  • The media industry has dropped 1.5%, while the S&P 500 has declined by 1.1%.
  • Time Warner Cable's market cap is $54.2 billion.
  • Walt Disney has a market cap of $179.7 billion.
  • Netflix's market cap is $51.8 billion.
  • Time Warner Cable's stock price has increased by 20.7% year-to-date.
  • Walt Disney's shares are up 4.9% year-to-date.
  • Netflix's stock price has soared by 113.0% year-to-date.
  • There are 8 analysts who rate Time Warner Cable as a buy, 1 analyst as a sell, and 11 as a hold.
  • Currently, 12 analysts rate Walt Disney as a buy, no analysts as a sell, and 10 as a hold.
  • 18 analysts rate Netflix as a buy, 2 analysts as a sell, and 8 as a hold.

Sources:

  • TheStreet Wire (http://www.thestreet.com)
  • Dow Jones Industrial Average (^DJI)
  • Time Warner Cable (TWC)
  • Walt Disney (DIS)
  • Netflix (NFLX)
  • PowerShares Dynamic Media (PBS)
  • ProShares Ultra Sht Consumer Services (SCC)