2-Star Stocks Poised to Plunge: Gannett?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, newspaper publisher Gannett (NYS: GCI) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Gannett's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||McLean, Va. (1906)|
|Market Cap||$3.1 billion|
|Trailing-12-Month Revenue||$5.2 billion|
|Management||CEO Gracia Martore|
Chief Marketing Officer Maryam Banikarim
|Return on Equity (average, past 3 years)||23.7%|
|Cash/Debt||$157.5 million / $1.7 billion|
|Competitors||The McClatchy Co.|
The New York Times Co.
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 27% of the 444 members who have rated Gannett believe the stock will underperform the S&P 500 going forward.
There's a clearly defined ceiling, but no floor whatsoever with declining revenues and high levels of debt. The newspaper business is consolidating to the point where only a couple of national papers ... and a bevy of low-profit regional papers survive, and even then the outcome for those is not exactly rosy.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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