The following are the top rated Communication Services stocks according to Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
INTERPUBLIC GROUP OF COMPANIES INC (IPG) is a mid-cap growth stock in the Advertising industry. The rating according to our strategy based on Joel Greenblatt is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: The Interpublic Group of Companies, Inc. is a global advertising and marketing services company. The Company specializes in insights, data, media, creative and production, digital commerce, healthcare marketing and communications. It operates through three segments: Media, Data & Engagement Solutions (MD&E), Integrated Advertising & Creativity Led Solutions (IA&C), and Specialized Communications & Experiential Solutions (SC&E). The MD&E segment provides global media and communications services, digital services and products, advertising and marketing technology, e-commerce services, data management and analytics, strategic consulting, and digital brand experience. MD&E comprises IPG Mediabrands, Acxiom, and others. The IA&C segment provides advertising, corporate and brand identity services, and strategic consulting. The SC&E segment provides global public relations and other specialized communications services, events, sports and entertainment marketing, and strategic consulting.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
| EARNINGS YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | PASS |
Detailed Analysis of INTERPUBLIC GROUP OF COMPANIES INC
CHARTER COMMUNICATIONS INC (CHTR) is a large-cap value stock in the Communications Services industry. The rating according to our strategy based on Joel Greenblatt is 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Charter Communications, Inc. is a broadband connectivity company and cable operator serving more than 57 million homes and businesses in 41 states through its Spectrum brand. Over an advanced communications network, the Company offers a range of residential and business services, including Spectrum Internet, television (TV), Mobile and Voice. For small businesses, Spectrum Business delivers a range of broadband products and services coupled with special features and applications to enhance productivity. For mid-market and large businesses, Spectrum Business provides customized, fiber-based solutions. Spectrum Reach delivers advertising and production for the modern media landscape. The Company also distributes news coverage and sports programming to its customers through Spectrum Networks. The Company offers its customers subscription-based Internet, video, mobile and voice services, with prices and related charges based on the types of service selected.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
| EARNINGS YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | FAIL |
Detailed Analysis of CHARTER COMMUNICATIONS INC
MATCH GROUP INC (MTCH) is a mid-cap growth stock in the Business Services industry. The rating according to our strategy based on Joel Greenblatt is 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Match Group, Inc., through its portfolio companies, is a provider of digital technologies designed to help people make connections. The Companys global portfolio of brands includes Tinder, Hinge, Match, Meetic, OkCupid, Pairs, Plenty Of Fish, Azar, BLK, and more, each built to increase its users' likelihood of connecting with others. Its segments include Tinder, Hinge, Evergreen & Emerging, and MG Asia. Tinder is an online dating platform with swipe technology. It offers Tinder Plus, Tinder Gold, or Tinder Platinum subscriptions. Hinge is an application focused on millennial and younger generations in English-speaking countries and several other European markets. It offers two premium subscriptions: Hinge+ and HingeX. MG Asia brands primarily focus on serving various Asian and Middle Eastern markets. MG Asia's brands are Azar and The Pairs. Match is an online dating application, and Meetic, a European online dating brand, are included in the Evergreen & Emerging segment.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
| EARNINGS YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | FAIL |
Detailed Analysis of MATCH GROUP INC
FOX CORP (FOXA) is a large-cap value stock in the Broadcasting & Cable TV industry. The rating according to our strategy based on Joel Greenblatt is 60% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Fox Corporation produces and distributes news, sports, and entertainment content through its primary domestic brands, including FOX News Media, FOX Sports, FOX Entertainment, FOX Television Stations and Tubi Media Group. Its operating segments include Cable Network Programming, Television, Credible and the FOX Studio Lot. Cable Network Programming produces and licenses news and sports content distributed through traditional cable television systems, direct broadcast satellite operators and telecommunication companies, virtual multi-channel video programming distributors and other digital platforms. Television produces, acquires, markets and distributes programming through the FOX broadcast network, advertising supported video-on-demand service Tubi, approximately 29 full power broadcast television stations, including 11 duopolies, and other digital platforms. The FOX Studio Lot provides television and film production services. Credible is a United States consumer finance marketplace.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
| EARNINGS YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | FAIL |
Detailed Analysis of FOX CORP
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
