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Nielsen, RaceTrac Renew Convenience Store Measurement Deal
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Nielsen Holdings plc announced yesterday the renewal of its data insights and analytics services for RaceTrac convenience stores.
As a part of the renewal program, Nielsen’s services will cover over 450 RaceTrac convenience stores and market metrics for Georgia, Florida, Louisiana and Texas.
Rob Hill, EVP, Retail Services at Nielsen stated, “We understand the importance of the convenience channel and are excited to help RaceTrac grow their business in this increasingly competitive space."
How is Nielsen Poised to Benefit?
We believe that the move will help Nielsen expand its client base and boost its Buy segment revenues from developed markets. The performance of the segment was particularly weak in the last quarter.
In the last quarter, Buy business revenues were $868 million (52% of total revenue), down 1.3% year over year but up 0.9% on a constant currency basis. Excluding the foreign currency impact, revenues from the developed market were down 1.4% due to softness in the discretionary services, especially in the U.S. market. However, revenues from emerging markets were up 7.2% on a constant currency basis.
The company has a huge and diversified client base that includes various Fortune 500 companies, most of which are Consumer Packaged Goods (CPG) and media companies.
We note that Nielsen’s shares depreciated 21.9% in the last one year in contrast to the Zacks Business - Information Services industry’s gain of 2.4%. Going forward, an increase in Buy segment revenues could boost its share price as well.
What’s on RaceTrac’s Platter?
RaceTrac is expanding its food service offerings and believes that Nielsen’s services will help it with an enhanced analytics and geographical reporting structure and a better understanding of the effects of marketing efforts.
This in turn will equip RaceTrac with informed, data-based decision making capabilities and improve customer experience.
Key Takeaway
The deal is a prime example of how Neilsen is utilizing its strong position in retail measurement, consumer panel measurement, consumer intelligence and analytical services markets and focus on innovation to gain new clients and retain the existing ones.
Zacks Rank and Stocks to Consider
Currently, Nielsen is a Zacks Rank #4 (Sell) stock. Better-ranked stocks in the broader technology space include TDK Corp (TTDKY - Free Report) , Acxiom Corporation and PC Connection, Inc. (CNXN - Free Report) . Both TDK and Acxiom sport a Zacks Rank #1 (Strong Buy) while PC Connection carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Notably, the long-term growth rates of TDK, Acxiom and PC Connection are 10.75%, 15% and 7%, respectively.
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Nielsen, RaceTrac Renew Convenience Store Measurement Deal
Nielsen Holdings plc announced yesterday the renewal of its data insights and analytics services for RaceTrac convenience stores.
As a part of the renewal program, Nielsen’s services will cover over 450 RaceTrac convenience stores and market metrics for Georgia, Florida, Louisiana and Texas.
Rob Hill, EVP, Retail Services at Nielsen stated, “We understand the importance of the convenience channel and are excited to help RaceTrac grow their business in this increasingly competitive space."
How is Nielsen Poised to Benefit?
We believe that the move will help Nielsen expand its client base and boost its Buy segment revenues from developed markets. The performance of the segment was particularly weak in the last quarter.
In the last quarter, Buy business revenues were $868 million (52% of total revenue), down 1.3% year over year but up 0.9% on a constant currency basis. Excluding the foreign currency impact, revenues from the developed market were down 1.4% due to softness in the discretionary services, especially in the U.S. market. However, revenues from emerging markets were up 7.2% on a constant currency basis.
The company has a huge and diversified client base that includes various Fortune 500 companies, most of which are Consumer Packaged Goods (CPG) and media companies.
Nielsen N.V. Revenue (TTM)
Nielsen N.V. Revenue (TTM) | Nielsen N.V. Quote
We note that Nielsen’s shares depreciated 21.9% in the last one year in contrast to the Zacks Business - Information Services industry’s gain of 2.4%. Going forward, an increase in Buy segment revenues could boost its share price as well.
What’s on RaceTrac’s Platter?
RaceTrac is expanding its food service offerings and believes that Nielsen’s services will help it with an enhanced analytics and geographical reporting structure and a better understanding of the effects of marketing efforts.
This in turn will equip RaceTrac with informed, data-based decision making capabilities and improve customer experience.
Key Takeaway
The deal is a prime example of how Neilsen is utilizing its strong position in retail measurement, consumer panel measurement, consumer intelligence and analytical services markets and focus on innovation to gain new clients and retain the existing ones.
Zacks Rank and Stocks to Consider
Currently, Nielsen is a Zacks Rank #4 (Sell) stock. Better-ranked stocks in the broader technology space include TDK Corp (TTDKY - Free Report) , Acxiom Corporation and PC Connection, Inc. (CNXN - Free Report) . Both TDK and Acxiom sport a Zacks Rank #1 (Strong Buy) while PC Connection carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Notably, the long-term growth rates of TDK, Acxiom and PC Connection are 10.75%, 15% and 7%, respectively.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>