Top Performer for Tues: Valassis (VCI)

With consumers looking for good value in their purchases during tough economic times, Valassis (VCI - Snapshot Report) finds itself in a sweet spot.

Today, the media and marketing services company also finds itself as a top-performing Zacks #1 Rank, with shares that have advanced approximately 7%.

(In addition to company-specific factors, VCI is most likely getting a boost today from news out of Gannett (GCI - Snapshot Report) that third-quarter earnings are expected to top expectations.)

VCI offers a wide range of marketing services to customer packaged goods manufacturers, retailers, technology companies and other customers. It is the only company that provides a combination of home-delivered media products and services at the market, neighborhood and household targeted levels, an can integrate all three levels of targeting into a single solution.

The company is gaining a lot of traction in this environment from its coupon books and fliers that are sent to homes, as well as from redplum.com - its interactive offering.

Volume today is nearing 700,000, which is above the daily average of 527,000. VCI is part of the Printing - Commercial industry. There are 2 other companies from this space on today's Zacks #1 Rank List: R.R. Donnelley & Sons Company (RRD - Snapshot Report) and Schawk, Inc. (SGK - Snapshot Report).

Earnings Estimates

The company's second-quarter report from late July led to a sharp advance in earnings estimates, which has remained over the past 2 months.

The Zacks Consensus Estimate for this year is at $1.21 per share, up more than 70% in 60 days from 71 cents.

Next year's Zacks Consensus Estimate has advanced 65% in that timeframe to $1.34 per share from 81 cents. The estimate also suggests year-over-year profit growth of nearly 11%.

Second Quarter

VCI earned 31 cents per share in its second quarter, marking a more than 100% advance from 15 cents a year earlier. The result also bettered the Zacks Consensus Estimate by more than 138%.

Revenue declined 8.6% to $544 million from $594.9 million. The drop was attributed to economic uncertainty.

"We continue to outperform most media companies because our product portfolio is well aligned with what research indicates is a permanent shift in shopper behavior toward value-oriented media," said Chairman/President/CEO Alan F. Schultz.

VCI also increased full-year 2009 adjusted EBITDA guidance to $245 million from $215 million.