Shares of Meredith Corporation surged nearly 36.2% on a year-to-date basis, clearly outperforming the Zacks categorized Publishing-Periodicals industry’s growth of 21.8%. The rise is mainly driven by the company’s strategic initiatives and positive earnings surprise history. Also, this Zacks Rank #3 (Hold) company hit a 52-week high of $59.05 yesterday, closing lower at $58.90. Notably, the stock exhibits a Growth Score of “A,” further contributing to its inherent strength.

Meredith’s strategic investments, along with acquisitions and partnership deals, play a major role in fortifying its media portfolio. Some of its important acquisitions include Shape magazine and the digital assets of Shape, Natural Health, and Fit Pregnancy brands, Selectable Media, Qponix. Alongside, the company revamped few magazines in its portfolio, like Family Circle.

Additionally, the company acquired the rights of Martha Stewart Living and Martha Stewart Weddings magazines, along with their respective websites, are proving as lucrative additions. Also, management has redesigned and relaunched various sites and unveiled Meredith Women's Network, as well, mostly covering women-related topics.

Driven by these strategic factors, Meredith posted better-than-expected bottom line for the 12th straight quarter, as it reported first-quarter fiscal 2017 results. It delivered first-quarter adjusted earnings per share of 75 cents, which surpassed the Zacks Consensus Estimate of 72 cents and also soared 44.2% year over year.

This was boosted by robust political advertising revenues and growth in digital advertising revenues, in both national as well as local businesses. For the second quarter, management expects earnings per share in the range of $1.18–$1.23. Further, the Zacks Consensus Estimate for the current quarter stands at $1.21. 

Recently, the company extended its contract with Wal-Mart Stores, Inc. (WMT Quick QuoteWMT - Free Report) for three more years, which includes expansion programs at Wal-Mart stores across U.S. and Canada. Further, the company is keen on expanding its brands through online platforms, televisions, videos, mobile applications as well as broadening its range of food and lifestyle content.

However, print media has been shrinking with advancing technology. Moreover, shifting to online business is likely to put enormous pressure on Meredith’s magazine portfolio. Additionally, intense competition across its magazines and related publishing products, as well as television stations, also poses significant threats to the company.

Nonetheless, Meredith focuses on bolstering advertising revenues, primarily in the digital space, and is concentrating on brand licensing, marketing services and eCommerce.

Stocks that Warrant a Look

Some better-ranked stocks include The Liberty Media Group and NTN Buzztime, Inc. .

The Liberty Media has increased 70.1% in the past six months. Moreover, it has outperformed the Zacks Consensus Estimate by an average earnings surprise of 72.1% in the trailing four quarters. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NTN Buzztime, with a long-term earnings growth rate of 20%, has a Zacks Rank #2 (Buy). The stock has gained 26.3% in the past one year.

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