The New York Times Adds Subscribers, Grows Profits

NYT’s latest total quarterly subscription revenue (print and digital) grew nearly 8% to $429 million on a year-over-year basis, and it’s expected to rise by up to another 8% in the second quarter. At the end of this year’s first quarter, the company reported having nearly 11 million subscribers, an adjusted operating profit margin of 12.8%, and is expected to generate per-share earnings of $1.97.

It’s no wonder NYT shares are up 30% in the past year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

New York Times Shares in Demand

Institutional volumes reveal plenty. Recently, NYT has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in NYT shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of discretionary names are under accumulation right now. But there’s a powerful fundamental story happening with the New York Times.

New York Times Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, NYT has had strong sales and earnings growth:

• 3-year sales growth rate (+10.9%)
• 3-year earnings growth rate (+44.5%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +10.7%.

Now it makes sense why the stock has been powering to new heights. NYT has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

The New York Times has been a top-rated stock at MAPsignals for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when NYT was a top pick…driving value along the way:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

New York Times Price Prediction

The NYT rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in NYT at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.