Will The New York Times (NYT) Be A Great Pick For 2H16?

Shares of The New York Times Company (NYSE:NYT) have gained 5% in the past one-month time period. If you haven’t yet taken advantage of the share price appreciation, then the time is right to add this stock to your portfolio. After all, The New York Times looks promising as the company is witnessing upward estimate revision and also adding diverse revenue stream. The Zacks Rank #2 (Buy) company’s recent performance speaks of its popularity among investors. Let’s delve slightly deeper into the reasons.

The New York Times Company has been building up diverse revenue streams, which include a pay-and-read model for NYTimes.com and the International New York Times, to make it less susceptible to the economic conditions. The company is also adapting to the changing face of the multiplatform media universe, which currently includes mobile, social media networks and reader application products in its portfolio.

The New York Times Company remains committed to streamline its cost structure, strengthen its balance sheet, and rebalance its portfolio. Management plans to invest over $50 million in the next three years to enhance its international digital potential. The company expects to add approximately 45,000–50,000 digital subscriptions to its news product and about 10,000–15,000 digital subscriptions to its Crossword product. It also anticipates that the number of paid digital subscribers would exceed 1.5 million by the end of the year.

The New York Times Company continued its earnings beat trend with better-than-expected results for first-quarter 2016. With this, the company has surpassed earnings expectations for seven straight quarters. The average positive surprise over the trailing four quarters comes to 26.7%. Following the first-quarter 2016 earnings beat, the Zacks Consensus Estimate for fiscal 2016 has moved up by 17.6% to 60 cents per share over the past 90 days. The second-quarter earnings estimate stands at 12 cents, up 20% in the past 90 days.

All these factors make The New York Times Company appear promising, making it a solid choice for investors.

Other Stocks to Consider

Other stocks that warrant a look in the sector include The McClatchy Co. (NYSE:MNI) , Gannett Co., Inc. (NYSE:GCI) and New Media Investment Group Inc. (NYSE:NEWM) . The McClatchy sports a Zacks Rank #1 (Strong Buy) whereas Gannett and New Media Investment Group hold a Zacks Rank #2 (Buy).