By: Jennifer Saba The Washington Post Co. is the top stock performer of 2004 for the newspaper group, according to a report issued by Merrill Lynch today. The company gained 24.2%, followed by Pulitzer, up 20.1%.
The companies that experienced declines in their stock prices: Tribune, down 18.3%; New York Times, down 14.6%; Dow Jones, down 13.6%; and Knight Ridder, down 13.5%.
The newspaper group as a whole finished the year down 1.7%, while the S&P 500 finished up 9%. For the month of December, the newspaper group was up 0.8%. In December, Washington Post once again outperformed its peers, with a gains of 4.8%, followed by E.W. Scripps, up 3.3%.
Merrill Lynch analyst Lauren Rich Fine noted in the report, "We have a hard time getting inspired by the newspaper names; fundamentals will likely remain mediocre during 2005 with 4% ad revenue growth projected for most. Share repurchase activity and solid free cash flow will likely keep investors interested." She maintains a "neutral stance" on the group.
The report singles out E.W. Scripps as its top stock pick because the company is "doing a better job than most of delivering solid near term results and building for a strong future." Tribune and Washington Post are listed as "buys," as well.
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