) reached a new 52-week high of $46.13 on Friday, Mar 8, gaining
momentum from the company's strategic initiatives focused on
driving growth through affiliate and subscription deals coupled
with the restructuring of CBS Outdoor. This Zacks Rank #2 (Buy)
mass media company eventually closed at $46.00, recording a
healthy return of 17.4% year-to-date.
Alongside, companies like
The J. M. Smucker Company
Molson Coors Brewing Company
) crafted new 52-week highs on Friday.
Drivers that Triggered Momentum
CBS remains well positioned to drive growth in the coming
quarters through its strategic initiatives focused on increasing
subscription based revenue channels. The company remains
optimistic and expects growth momentum to continue in 2013 based
on reverse compensation from affiliates, strong demand of its
content, digital distribution, syndication sales and
CBS is eyeing around $1 billion in retransmission and reverse
compensation revenues by 2017. The company also remains positive
about CBS Television Network being the growth driver.
Moreover, in a strategic move to unlock the value of the
assets, CBS decided to convert its CBS Outdoor operations in
North America and South America into a real estate investment
trust ("REIT") and divest its Outdoor businesses in Europe and
We believe CBS Corporation's decision regarding the Outdoor
business would augur well for the company, as it would lower its
dependency on advertising, which remains vulnerable to the
Stock's Key Indicators
CBS currently trades at a forward P/E of 15.54x, a 9.7%
discount with the industry average of 17.21x. Its price-to-sales
ratio of 1.99 is also below the industry average of 2.97.
Moreover, the company generates return-on-equity (ROE) and
return-on-investment (ROI) of 16.0% and 10.1%, respectively. The
company's strong fundamentals are well supported by its long-term
estimated EPS growth rate of 11.7%.
CBS CORP (CBS): Free Stock Analysis Report
SMUCKER JM (SJM): Free Stock Analysis Report
SYSCO CORP (SYY): Free Stock Analysis Report
MOLSON COORS-B (TAP): Free Stock Analysis
To read this article on Zacks.com click here.