NEW YORK, Aug. 2 /PRNewswire/ -- Discovery Communications Class A common shares (DISCA: $39) have been picked by Standard & Poor's Equity Research as its Focus Stock of the Week. DISCA carries S&P's highest investment recommendation of 5-STARS, or Strong Buy.

"Amid an increasingly cluttered television landscape, we think this pure-play content provider occupies a uniquely attractive position as the global leader in the niche market of non-fiction programming, through such recognizable cable brands as Discovery Channel, TLC, and Animal Planet," said Tuna Amobi, Media & Entertainment Equity Analyst at Standard & Poor's Equity Research. "Currently in 185 countries, Discovery runs a truly globalized operation serving a vast international audience with programming that tends to be culturally neutral."

Amobi believes the company's portfolio composition provides an enhanced level of business and geographic diversification, helping it to sustain above-average growth in earnings and free cash flow through economic cycles. He observes that nearly half of Discovery's revenues are derived from recurring subscriber fees under its multi-year contractual relationships with worldwide affiliate partners.

"Discovery seems well positioned to increasingly exploit ratings resurgence across its core networks," said Mr. Amobi. "Coming off its strong gains in the 2010-2011 TV upfront advertising marketplace, we expect further enhancement of the company's industry-leading domestic networks margins, while we see the international networks narrowing the margin differential between the two segments. We believe further gains in operating leverage should arise, as the fruits of recent restructuring steps take hold."

The company is scheduled to report second-quarter 2010 earnings on Tuesday, August 3, 2010.

To view a video of Mr. Amobi discussing DISCA, paste the following link in to your browser.

http://link.delvenetworks.com/media/?mediaId=b62b7e1c01cb4fbfb94f1b65dca6b908&width=480&height=411&playerForm=DelvePlayer

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S&P Global STARS Distribution

In North America

As of June 30, 2010, research analysts at Standard & Poor's Equity Research Services North America recommended 38.2% of issuers with buy recommendations, 52.2% with hold recommendations and 9.6% with sell recommendations.

In Europe

As of June 30, 2010, research analysts at Standard & Poor's Equity Research Services Europe recommended 35.7% of issuers with buy recommendations, 40.7% with hold recommendations and 23.6% with sell recommendations.

In Asia

As of June 30, 2010 research analysts at Standard & Poor's Equity Research Services Asia recommended 45.3% of issuers with buy recommendations, 48.3% with hold recommendations and 6.4% with sell recommendations.

Globally

As of June 30, 2010, research analysts at Standard & Poor's Equity Research Services globally recommended 38.4% of issuers with buy recommendations, 49.8% with hold recommendations and 11.8% with sell recommendations.

5-STARS (Strong Buy): Total return is expected to outperform the total return of a relevant benchmark, by a wide margin over the coming 12 months, with shares rising in price on an absolute basis.

4-STARS (Buy): Total return is expected to outperform the total return of a relevant benchmark over the coming 12 months, with shares rising in price on an absolute basis.

3-STARS (Hold): Total return is expected to closely approximate the total return of a relevant benchmark over the coming 12 months, with shares generally rising in price on an absolute basis.

2-STARS (Sell): Total return is expected to underperform the total return of a relevant benchmark over the coming 12 months, and the share price is not anticipated to show a gain.

1-STARS (Strong Sell): Total return is expected to underperform the total return of a relevant benchmark by a wide margin over the coming 12 months, with shares falling in price on an absolute basis.

Relevant benchmarks: In North America, the relevant benchmark is the S&P 500 Index, in Europe and in Asia, the relevant benchmarks are generally the S&P Europe 350 Index and the S&P Asia 50 Index.

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