Media World: Newspaper stocks are enjoying a rare rally

Lowly newspaper stocks, sad sacks of the market, are enjoying a renaissance of sorts.

Gannett Co., (GCI) the largest newspaper publisher in the U.S., today forecast that third quarter earnings would be 39 cents to 42 cents per share, excluding one-time items such as facility consolidations and employee layoffs. Those charges equal about 11 cents to 14 cents per share. Analysts had been predicting results of 28 cents, according to Thomson Reuters.

Shares of the company, which publishes USA Today and 83 other daily newspapers and operates 23 television stations, soared 18 percent.