World Wrestling Entertainment, Inc. (NYSE:WWE)

CAPS Rating: 2 out of 5

An integrated media & entertainment company engaged in the development, production & marketing of television and pay-per-view programming and live events and the licensing and sale of consumer products featuring World Wrestling Entertainment brands.


Player Avatar TheCrazy1 (47.35) Submitted: 3/2/2013 7:18:59 PM : Underperform Start Price: $7.97 WWE Score: -45.74

Virtually no revenue growth to speak of (average 1.1% per year since 2008). TV ratings have declined dramatically since the "Attitude Era" and have stabilized in the low 3's. UFC is cutting into their audience and drawing more pay-per view buys and mainstream publicity. The stock trades at 29x last year's earnings. That's the kind of P/E ratio that's acceptable for a growing company, not a company in decline.

There may be hope for WWE if the creative team focuses on building new stars, creating quality storylines, and most importantly, realizes that John Cena is not the next Hulk Hogan.

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