Why Scripps Networks Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, television network operator Scripps Networks Interactive has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Scripps and see what CAPS investors are saying about the stock right now.

Scrippsfacts

Headquarters (Founded)

Knoxville, Tenn. (2008)

Market Cap

$8.9 billion

Industry

Broadcasting

Trailing-12-Month Revenue

$2.3 billion

Management

Chairman/CEO Kenneth Lowe

CFO Joseph NeCastro

Return on Equity (Average, Past 3 Years)

30.3%

Cash/Debt

$439.2 million / $1.4 billion

Dividend Yield

0.8%

Competitors

Discovery Communications
News Corp.

Walt Disney


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 360 members who have rated Scripps believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, PuddinHead42, touched on the digital trends working in Scripps' favor:

Content providers will be king as we move from a fixed cable format to a free form Internet format where you can watch any show you want anytime. DVR in the cloud. Watch a Food network show on your iPad while you follow the recipe. Shows can be "framed" with fixed [ads] in the frames. ... Plus [ads] targeted to your web searches and purchases as well as the show. They have great content that is relatively cheap to produce. ... Get in now.

If you want to retire rich, you need to put together the best portfolio you can. Of course, despite its five-star rating, Scripps may not be your top choice.

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The article Why Scripps Networks Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Scripps Networks Interactive and Walt Disney and owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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