Earnings could mark end to rally in U.S. media stocks

U.S. fund managers' newfound love of media stocks will soon be put to the test. Shares of Time Warner Inc, Twenty-First Century Fox, and CBS Corp are all up by double digits since the start of the year. Now, with media stocks in the S&P 500 trading at a trailing price to earnings ratio of 19.4, their highest valuation in four months, investors will need confirmation that the momentum can continue.