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Tale of the Tape

Zacks Equity Research

New Media Investment (NEWM): The Perfect Mix of Value and Rising Earnings Estimates?
October 17, 2016

NEWM

Trades from $3

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; New Media Investment Group Inc. (NEWM - Free Report) .

New Media Investment in Focus

NEWM may be an interesting play thanks to its forward PE of 13.5, its P/S ratio of 0.5, and its decent dividend yield of 8.98%. These factors suggest that New Media Investment is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that NEWM has decent revenue metrics to back up its earnings.   

NEW MEDIA INV PE Ratio (TTM)

 

NEW MEDIA INV PE Ratio (TTM) | NEW MEDIA INV Quote

But before you think that New Media Investment is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 3.8% in the past 30 days, thanks to 1 upward revision in the past one month compared to none lower.

This estimate strength is actually enough to push NEWM to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

So really, New Media Investment is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

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