For Immediate Release
Chicago, IL – January 13, 2010 – Zacks.com releases the latest Zacks Industry Rank. Stocks featured in this week’s analysis include Gannett (GCI), New York Times (NYT), McClatchy (MNI) and News Corp. (NWS).
Zacks Industry Rank Analysis is written by Dirk Van Dijk, CFA, Chief Equity Strategist for Zacks.com.
Some Good “News”
If there was ever an industry that everyone knows is a dinosaur, it would be the Newspapers. The past year has seen a number of well-known and established papers go bankrupt, and several of them have stopped publishing. Even if they do have long-term challenges, it doesn’t mean that pessimism can’t get overdone on a short-term or even medium-term basis.
When expectations are very low, you only have to avoid a disaster — not hit it out of the park — to do much better than expected. Put another way, people in Detroit were probably happier with the Lions this year than the people in Pittsburgh were with the Steelers, even though the Steelers had a much better record. The reason is that people in Detroit expected the Lions to stink, while people in Pittsburgh were expecting to at least make it to the playoffs, if not a return trip to the Super Bowl. If NFL teams were stocks, the Lions would have soared while the Steelers would have been a dog in 2009.
The Newspaper industry is now in 7th place among the 206 industries we track — an improvement of seven spots from last week. The average Zacks Rank is 2.11 versus 2.11 last week. Three of the seven firms in the group have coveted #1 ranks, including Gannett (GCI), the largest newspaper chain and owner of USA Today, and the New York Times (NYT), which is to my (somewhat biased) mind, the best newspaper in the English-speaking world. McClatchy (MNI) also holds a Zacks #1 Rank. News Corp. (NWS), which is more of a media conglomerate — but one with a lot of newspaper exposure (both highbrow in the form of the Wall Street Journal, and lowbrow in the form of the New York Post, as well as papers around the world) — has a Zack #2 Rank.
Yes, papers face declining circulations, particularly among the young, and things like Craig’s List have decimated their once highly lucrative classified franchises. They are, however, often local monopolies, and advertisers still find them useful. As for the readers, I know I feel more confident about the accuracy of information I get if it comes from the New York Times or the Wall Street Journal than if it comes from some semi-anonymous blogger.
While they may never return to their glory days, that doesn’t mean that they are all going to go extinct in the near future, either. Most have greatly reduced their costs over the last year, so just a small pick up in revenue should lead to large gains on the bottom line. The Newspapers are part of the reason the Consumer Staples sector is tied for second among all sectors.
Zacks “Profit from the Pros ” e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5611.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3:1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit From the Pros by going to http://at.zacks.com/?id=5610.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact: Dirk Van Dijk, CFA
Company: Zacks.com
Phone: 312-265-9211
Email: pr@zacks.com
Visit: www.zacks.com
