Markets

Meredith (MDP) Looks Promising: Invest in the Stock Now

Shares of Meredith CorporationMDP are riding high on positive earnings surprise, robust fiscal 2017 outlook, strategic endeavors and acquisitions. Notably, these factors have driven the company's shares up by 38.3% in the past one year, outperforming the Zacks categorized Publishing-Periodical industry's gain of 29.1%.

Let's delve deeper

Ever since Meredith raised the third quarter and fiscal 2017 earnings outlook on Mar 21, its shares have gained nearly 5%. Management now projects fiscal 2017 earnings between $4.13 and $4.18 on a GAAP basis, and in the range of $3.85-$3.90 per share, excluding special items. Earlier, the company had guided earnings between $3.78 and $4.08 on a GAAP basis, and in the band of $3.50 to $3.80, on an adjusted basis for the fiscal year.

For the third quarter, the Zacks Rank #2 (Buy) company expects earnings in the band of 85-87 cents, up from 75-80 cents, on the back of better-than-expected advertising performance, primarily from digital operations at both National and Local Media Groups.

Digital business, brand licensing activities and great group of television stations provides Meredith a diversified landscape for revenue generation. Moreover, in order to expand media portfolio, the company has been making strategic investments as well as acquisitions and partnership deals. As per media reports, it is making an attempt to acquire Time Inc. TIME , which has been focusing on the creation of digital properties and intends to increase digital advertising revenues by enhancing native branded content and video.

To strengthen position, Meredith has launched additional newscasts in the Atlanta, Phoenix, Portland, Nashville, Greenville and Flint/Saginaw markets. The company also renewed licensing program with Wal-Mart Stores, Inc. WMT , which allows it to showcase 3,000 SKUs of Better Homes & Gardens branded products at 5,000 outlets and on Walmart.com. The company's other new brand licensing programs, includes an EatingWell line of frozen foods; SHAPE fitness apparel; and Allrecipes cooking utensils. Further, Meredith launched a new national broadcast television series based on the Allrecipes brand.

Bottom Line

From the above analysis it is apparent that Meredith is a stock that deserves a place in your portfolio. Investors may also consider Cable ONE, Inc. CABO , which has surged 43.6% in the past one year. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

More Stock News: 8 Companies Verge on Apple-Like Run

Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.

A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them 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

Cable One, Inc. (CABO): Free Stock Analysis Report

Meredith Corporation (MDP): Free Stock Analysis Report

Time Inc. (TIME): Free Stock Analysis Report

Wal-Mart Stores, Inc. (WMT): 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.

In This Story

CABO WMT MDP

Other Topics

Stocks