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The New York Times (NYT - Free Report) is a Zacks Rank #5 (Strong Sell) following an earnings beat just the other day. Investors might be wondering how a stock like this can beat the number and still fall to the lowest Zacks Rank. Let’s take a deeper look at this stock in this Bear of the Day article.
Description
Founded in 1896 and headquartered in New York City, New York, The New York Times Company (NYT - Free Report) operates as a diversified media company that comprises newspapers, Internet businesses and other investments. The company ended fourth-quarter 2021 with approximately 8,789,000 paid subscriptions across its print and digital products. It added 375,000 net new digital subscriptions compared with the end of the third quarter of 2021. Of the total subscription net additions, 171,000 came from the digital news product, while 204,000 came from other digital-only products.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of NYT, I see four straight beats of the Zacks Consensus Estimate over the last year. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For NYT I see annual estimates moving lower.
The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is mixed for those numbers.
The current year 2022 consensus number has dropped from $1.36 to $1.23.
The next year has dropped from $1.58 to $1.45 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a majority of stocks in the Zacks universe are seeing positive earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Chart
The New York Times Company Price, Consensus and EPS Surprise
Image: Bigstock
Bear Of The Day: New York Times (NYT)
The New York Times (NYT - Free Report) is a Zacks Rank #5 (Strong Sell) following an earnings beat just the other day. Investors might be wondering how a stock like this can beat the number and still fall to the lowest Zacks Rank. Let’s take a deeper look at this stock in this Bear of the Day article.
Description
Founded in 1896 and headquartered in New York City, New York, The New York Times Company (NYT - Free Report) operates as a diversified media company that comprises newspapers, Internet businesses and other investments. The company ended fourth-quarter 2021 with approximately 8,789,000 paid subscriptions across its print and digital products. It added 375,000 net new digital subscriptions compared with the end of the third quarter of 2021. Of the total subscription net additions, 171,000 came from the digital news product, while 204,000 came from other digital-only products.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of NYT, I see four straight beats of the Zacks Consensus Estimate over the last year. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For NYT I see annual estimates moving lower.
The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is mixed for those numbers.
The current year 2022 consensus number has dropped from $1.36 to $1.23.
The next year has dropped from $1.58 to $1.45 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a majority of stocks in the Zacks universe are seeing positive earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Chart
The New York Times Company Price, Consensus and EPS Surprise
The New York Times Company price-consensus-eps-surprise-chart | The New York Times Company Quote