Markets

Bear of the Day: Tribune Publishing (TPUB)

One of the big stories of 2015 has definitely been the ongoing slump in Big Media stocks like the Tribune Publishing ( TPUB ) company. Stocks like TPUB have severely struggled over the last few months and changing trends and consumers make a turnaround appear unlikely.

Consumers are increasingly turning to smaller niche sites for their news while a variety of major digital media companies have sprung up in the past few years as well. All of this makes it more difficult for TPUB to sell subscriptions-- or get more eyeballs -- for its lineup of newspapers and affiliated sites such as the Chicago Tribune, the LA Times or the Baltimore Sun just to name a few.

Bottoming Out?

Shares of TPUB are actually down more than 50% in the past 12 months as investors abandon this company for higher growth opportunities in the media world. And while this is obviously a significant decline, there is little hope that a quick turnaround is at hand anytime soon, and especially if you look to recent earnings estimate revisions from analysts who cover the stock.

The Zacks Consensus Estimate for TPUB has cratered in recent weeks as the current quarter has fallen from a profit of three cents per share down to a loss of seven cents a share in just the past two months. The full year estimate isn't any better as this has fallen from $1.57/share two months ago to just $1.17/share today.

Clearly TPUB hasn't bottomed out from an EPS perspective as earnings are now projected to decline by nearly 30% year-over-year. This is a pretty big fall from just a few months back when the estimate called for just a 6% decline in growth.

Thanks to these figures it shouldn't be too surprising to note that TPUB has a Zacks Rank #5 (Strong Sell) and that we are expecting more underperformance from the company in the near term.

Other Picks?

However, the entire media industry isn't in a decline as there are a couple of interesting choices out there that could be bought on the dip. After all, the publishing-newspaper industry is actually in the top half when looking at our Zacks Industry Rank so there are actually a few solid choices in the group.

Two that stand out though are McClatchy Company ( MNI ) and New Media Investment ( NEWM ) as these each have a Zacks Rank #2 (Buy). Just note that both of these are pretty small companies and could be prone to more volatility. However, either appear well-positioned for a turnaround at this time, and especially when you compare them to TPUB right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

TRIBUNE PUBLSHG (TPUB): Free Stock Analysis Report

NEW MEDIA INV (NEWM): Free Stock Analysis Report

MCCLATCHY CO-A (MNI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More