Gannett Co., Inc.
) touched a new 52-week high of $26.96 on Monday, Sep 30 and
eventually closed trade at $26.79. The stock has been performing
well, driven by the company's declared strategic plans. This
diversified media conglomerate has amassed a year-to-date return
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The average volume of shares traded over the last 3 months was
approximately 2,107K. Moreover, the company currently trades at a
forward P/E of 12.3x, a 60.1% discount to the peer group average
of 31.19x. The last traded price is 1.7% below the Zacks
Consensus average analyst price target of $27.25. Additionally,
the company's long-term estimated earnings per share (EPS) growth
rate is 6.0%.
Investors are optimistic about this Zacks Rank #2 (Buy) stock as
it made some strategic declarations to keep itself buoyed on the
growth trajectory. These included the disclosure of $1.25 billion
Senior Notes offering, shareholders' approval of the Belo Corp.
acquisition and initiation of a new pilot program. Moreover, the
company signed a deal with Generation Partners to promote the
growth of Captivate Network.
The Belo acquisition was announced in June. The $1.5 million deal
is expected to close by the end of 2013. This deal is a strategic
fit for the company, as it will transform Gannett's business
model that is largely focused on low margins newspapers, into a
high-margin multi-media business.
The company has also initiated a subscription-based model,
launched Digital Marketing Services in top markets and
refurbished its iconic brand, USA TODAY to generate new
advertising and marketing revenue sources. The company is
expanding its digital marketing services under the brand name of
In October, Gannett will launch its all-access content
subscription model in four markets in association with USA TODAY.
The program will be initiated in Indianapolis, Ind.; Rochester,
N.Y.; Appleton, Wis.; and Fort Myers, Fla.
For the pilot program and expansion of digital services, Gannett
is expected to invest nearly $2-$3 million in third-quarter 2013
and nearly $4-$5 million in fourth-quarter 2013.
We believe that Gannett has been realigning its cost structure
and streamlining operations to increase its efficiencies, and
consequently, bolster the operating performance.
Apart from Gannett, other stocks such as
Boston Beer Co. Inc.
Time Warner Inc.
L Brands, Inc.
) achieved new 52-week highs of $250.34, $66.38 and $61.66,
respectively, on Sep 30, 2013.