) recorded a new 52-week high of $47.50 yesterday, before closing
at $47.07, and rising approximately 40% year to date.
Based on the current price, Meredith is 12.7% above the Zacks
Consensus average analyst price target of $41.75. Moreover, it
currently trades at a forward P/E of 16.5x, a 15.9% discount the
peer group average of 19.62x. The stock's long-term EPS growth
rate stands healthy at 11.5%.
Meredith is a perfect bet for investors who are seeking both
growth and income. The company through its TSR (Total Shareholder
Return) strategy intends to boost shareholders value through
dividends, share repurchases and strategic investments in
business to drive growth.
The company has a strong history of making dividend payouts
for 66 consecutive years. Over the last decade, the company has
boosted its dividend at an average annualized rate of 16% and
raised dividend annually for 20 straight years.
Moreover, Meredith constantly endeavors to explore and add
alternative revenue generating channels through acquisitions or
strategic alliances. Thereby, the company is attempting to reduce
its dependence on conventional advertising.
The company also extended its contract with
Wal-Mart Stores Inc
) through 2016, which includes an expansion of the Better Homes
and Gardens branded home decor and garden program at Wal-Mart
stores across the United States and Canada.
Alongside, the company renewed its long-term affiliation
) Fox Broadcasting Co.
Going forward, management's strategy will be focused upon
bolstering advertising revenue, primarily in the digital space,
enhancing online consumer transactions, especially magazine
subscription orders, focusing on non-advertising dependant
activities, such as brand licensing, marketing services and
e-Commerce, and attaining operational efficiencies.
Currently, shares of Meredith hold a Zacks Rank #3 (Hold).
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