10 Best Publishing for February 2026
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Market Overview & Selection Criteria
The publishing and media sectors face headwinds from digital disruption and shifting consumer habits, yet select companies show resilience through strong margins and cash flows despite revenue pressures. ValueSense analysis highlights undervalued stocks based on intrinsic value estimates exceeding current prices, quality ratings above 5.0, and key metrics like ROIC, FCF margins, and debt levels. These top stock picks were selected for their potential in a recovering ad and subscription-driven market, focusing on firms with positive FCF generation and growth opportunities in digital content. This watchlist emphasizes best value stocks across media, energy, consumer goods, and tech, ideal for diversified investment opportunities.
Featured Stock Analysis
Stock #1: News Corporation (NWS)
| Metric | Value |
|---|---|
| Market Cap | $17.4B |
| Quality Rating | 6.1 |
| Intrinsic Value | $16.3 |
| 1Y Return | -1.6% |
| Revenue | $8,500.0M |
| Free Cash Flow | $606.0M |
| Revenue Growth | (16.4%) |
| FCF margin | 7.1% |
| Gross margin | 74.8% |
| ROIC | 6.8% |
| Total Debt to Equity | 30.7% |
Investment Thesis
News Corporation (NWS) stands out in the publishing sector with a market cap of $17.4B and a Quality rating of 6.1. Its intrinsic value of $16.3 suggests undervaluation, supported by robust gross margins at 74.8% and FCF of $606.0M despite a revenue decline of 16.4%. ROIC at 6.8% and moderate Total Debt to Equity of 30.7% indicate operational efficiency in a challenging media landscape. The 1Y Return of -1.6% reflects sector pressures, but strong FCF margin of 7.1% positions it for recovery through content monetization.
This analysis reveals NWS as a stable media play with high margins offsetting revenue contraction, making it a candidate for NWS analysis in value-focused portfolios.
Key Catalysts
- High gross margin 74.8% supports profitability amid revenue challenges
- Solid FCF generation $606.0M for reinvestment or shareholder returns
- Manageable debt levels (30.7% Total Debt to Equity) enhance financial flexibility
Risk Factors
- Revenue contraction (16.4% growth) from digital shifts and ad market volatility
- Modest ROIC 6.8% limits aggressive expansion potential
- Negative 1Y Return -1.6% signals short-term market skepticism
Stock #2: The New York Times Company (NYT)
| Metric | Value |
|---|---|
| Market Cap | $12.0B |
| Quality Rating | 7.8 |
| Intrinsic Value | $32.5 |
| 1Y Return | 35.6% |
| Revenue | $2,749.2M |
| Free Cash Flow | $536.5M |
| Revenue Growth | 8.4% |
| FCF margin | 19.5% |
| Gross margin | 51.6% |
| ROIC | 26.1% |
| Total Debt to Equity | 0.0% |
Investment Thesis
The New York Times Company (NYT) excels with a $12.0B market cap and top-tier Quality rating of 7.8. Intrinsic value at $32.5 points to significant upside, bolstered by 8.4% revenue growth to $2,749.2M and impressive FCF of $536.5M (19.5% margin). Zero Total Debt to Equity and ROIC of 26.1% underscore a debt-free balance sheet and capital efficiency, driving a strong 1Y Return of 35.6%. Gross margins at 51.6% reflect successful digital subscription strategies.
NYT's metrics position it as a leader in NYT stock analysis, with growth and profitability ideal for media sector exposure.
Key Catalysts
- Strong revenue growth 8.4% from digital subscriptions
- Exceptional FCF margin 19.5% and ROIC 26.1% for sustained expansion
- No debt (0.0% Total Debt to Equity) provides resilience
Risk Factors
- Dependence on subscription model amid content competition
- Potential margin pressure if growth slows
- High quality rating may already price in optimism
Stock #3: Pearson plc (PSO)
| Metric | Value |
|---|---|
| Market Cap | $8,745.6M |
| Quality Rating | 7.2 |
| Intrinsic Value | $20.7 |
| 1Y Return | -22.0% |
| Revenue | £7,069.0M |
| Free Cash Flow | £1,140.0M |
| Revenue Growth | (6.4%) |
| FCF margin | 16.1% |
| Gross margin | 51.0% |
| ROIC | 28.0% |
| Total Debt to Equity | 41.6% |
Investment Thesis
Pearson plc (PSO), with an $8,745.6M market cap and Quality rating of 7.2, offers intrinsic value of $20.7. Despite -22.0% 1Y Return and 6.4% revenue growth on £7,069.0M, it generates £1,140.0M FCF (16.1% margin) and leads with 28.0% ROIC. Gross margins at 51.0% and Total Debt to Equity of 41.6% highlight efficiency in education publishing.
PSO merits attention in PSO analysis for its high returns on capital despite revenue headwinds.
Key Catalysts
- Superior ROIC 28.0% indicating strong capital allocation
- Healthy FCF margin 16.1% on £1,140.0M cash flow
- Solid gross margins 51.0% in core education segment
Risk Factors
- Revenue decline (6.4% growth) from market shifts
- Negative 1Y Return -22.0% reflects investor caution
- Currency exposure with revenue in GBP
Stock #4: TXNM Energy, Inc. (TXNM)
| Metric | Value |
|---|---|
| Market Cap | $5,463.8M |
| Quality Rating | 5.8 |
| Intrinsic Value | $81.4 |
| 1Y Return | 23.5% |
| Revenue | $2,109.3M |
| Free Cash Flow | ($555.8M) |
| Revenue Growth | 10.6% |
| FCF margin | (26.4%) |
| Gross margin | 56.4% |
| ROIC | 8.4% |
| Total Debt to Equity | (12.1%) |
Investment Thesis
TXNM Energy, Inc. (TXNM) has a $5,463.8M market cap and Quality rating of 5.8, with intrinsic value at $81.4 signaling deep value. Revenue grew 10.6% to $2,109.3M, yielding 23.5% 1Y Return, though negative FCF of $555.8M and 26.4% margin reflect capex-heavy energy operations. Gross margins at 56.4%, ROIC 8.4%, and negative Total Debt to Equity -12.1% show unique financial structure.
This makes TXNM a divergent TXNM analysis pick outside pure media.
Key Catalysts
- Revenue acceleration (10.6% growth) in energy demand
- Positive 1Y Return 23.5% amid sector tailwinds
- Strong gross margins 56.4% support operations
Risk Factors
- Negative FCF ($555.8M) due to investments
- Low FCF margin (26.4%) pressures cash position
- Energy sector volatility
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Stock #5: Post Holdings, Inc. (POST)
| Metric | Value |
|---|---|
| Market Cap | $5,396.7M |
| Quality Rating | 6.0 |
| Intrinsic Value | $132.2 |
| 1Y Return | -5.0% |
| Revenue | $8,158.1M |
| Free Cash Flow | $619.1M |
| Revenue Growth | 3.0% |
| FCF margin | 7.6% |
| Gross margin | 28.7% |
| ROIC | 6.1% |
| Total Debt to Equity | 197.2% |
Investment Thesis
Post Holdings, Inc. (POST) features a $5,396.7M market cap, Quality rating 6.0, and intrinsic value $132.2. Revenue up 3.0% to $8,158.1M with $619.1M FCF (7.6% margin), but high Total Debt to Equity at 197.2% and ROIC 6.1% warrant caution. Gross margins 28.7% and -5.0% 1Y Return highlight consumer staples stability.
POST adds diversification in POST stock analysis.
Key Catalysts
- Steady revenue growth 3.0% in consumer products
- Positive FCF $619.1M for debt management
- Intrinsic value upside $132.2
Risk Factors
- Elevated debt (197.2% Total Debt to Equity)
- Modest ROIC 6.1%
- Recent underperformance (-5.0% 1Y Return)
Stock #6: Polaris Inc. (PII)
| Metric | Value |
|---|---|
| Market Cap | $3,645.0M |
| Quality Rating | 5.1 |
| Intrinsic Value | $55.9 |
| 1Y Return | 32.1% |
| Revenue | $7,152.0M |
| Free Cash Flow | $558.1M |
| Revenue Growth | (0.3%) |
| FCF margin | 7.8% |
| Gross margin | 19.2% |
| ROIC | (0.3%) |
| Total Debt to Equity | 183.4% |
Investment Thesis
Polaris Inc. (PII), market cap $3,645.0M, Quality rating 5.1, intrinsic value $55.9. Flat revenue growth (0.3%) to $7,152.0M with $558.1M FCF (7.8% margin), but negative ROIC -0.3% and high debt (183.4% Total Debt to Equity). 32.1% 1Y Return and 19.2% gross margins show powersports demand.
PII offers cyclical exposure in PII analysis.
Key Catalysts
- Strong 1Y Return 32.1% from market recovery
- Reliable FCF $558.1M
- Gross margins 19.2% in niche manufacturing
Risk Factors
- Negative ROIC -0.3% signals inefficiency
- High leverage (183.4% debt ratio)
- Stagnant revenue (0.3% growth)
Stock #7: John Wiley & Sons, Inc. (WLY)
| Metric | Value |
|---|---|
| Market Cap | $1,624.8M |
| Quality Rating | 6.2 |
| Intrinsic Value | $32.3 |
| 1Y Return | -24.6% |
| Revenue | $1,665.8M |
| Free Cash Flow | $148.3M |
| Revenue Growth | (5.3%) |
| FCF margin | 8.9% |
| Gross margin | 70.3% |
| ROIC | 8.9% |
| Total Debt to Equity | 130.3% |
Investment Thesis
John Wiley & Sons, Inc. (WLY) has $1,624.8M market cap, Quality rating 6.2, intrinsic value $32.3. Revenue down 5.3% to $1,665.8M, but $148.3M FCF (8.9% margin), 70.3% gross margins, ROIC 8.9%. High debt 130.3% and -24.6% 1Y Return reflect publishing transitions.
Key for WLY analysis in education media.
Key Catalysts
- Exceptional gross margins 70.3%
- Positive FCF and ROIC 8.9%
- Undervalued intrinsic $32.3
Risk Factors
- Revenue decline (5.3% growth)
- High debt 130.3%
- Weak 1Y Return -24.6%
Stock #8: Gannett Co., Inc. (GCI)
| Metric | Value |
|---|---|
| Market Cap | $876.1M |
| Quality Rating | 5.7 |
| Intrinsic Value | $8.7 |
| 1Y Return | 19.3% |
| Revenue | $2,338.5M |
| Free Cash Flow | $28.3M |
| Revenue Growth | (8.6%) |
| FCF margin | 1.2% |
| Gross margin | 45.4% |
| ROIC | 10.1% |
| Total Debt to Equity | 597.1% |
Investment Thesis
Gannett Co., Inc. (GCI), $876.1M market cap, Quality 5.7, intrinsic $8.7. Revenue down 8.6% to $2,338.5M, thin $28.3M FCF (1.2% margin), but 10.1% ROIC and 19.3% 1Y Return. Extreme debt 597.1% is a concern amid 45.4% gross margins.
GCI fits high-risk GCI analysis.
Key Catalysts
- Improving 1Y Return 19.3%
- Decent ROIC 10.1%
- Local media resilience
Risk Factors
- Very high debt 597.1%
- Low FCF margin 1.2%
- Ongoing revenue drop (8.6%)
Stock #9: Agora, Inc. (API)
| Metric | Value |
|---|---|
| Market Cap | $393.6M |
| Quality Rating | 5.4 |
| Intrinsic Value | $12.4 |
| 1Y Return | -31.1% |
| Revenue | $137.4M |
| Free Cash Flow | ($18.5M) |
| Revenue Growth | 1.9% |
| FCF margin | (13.4%) |
| Gross margin | 66.8% |
| ROIC | (8.3%) |
| Total Debt to Equity | 13.5% |
Investment Thesis
Agora, Inc. (API), small cap $393.6M, Quality 5.4, intrinsic $12.4. Modest 1.9% revenue growth to $137.4M, but negative FCF ($18.5M, -13.4% margin) and ROIC -8.3%. Low debt 13.5% and 66.8% gross margins, -31.1% 1Y Return indicate tech challenges.
API analysis for growth speculators.
Key Catalysts
- Revenue uptick 1.9%
- High gross margins 66.8%
- Low debt 13.5%
Risk Factors
- Negative FCF and ROIC
- Sharp 1Y decline -31.1%
- Small cap volatility
Stock #10: Reading International, Inc. (RDI)
| Metric | Value |
|---|---|
| Market Cap | $24.8M |
| Quality Rating | 5.2 |
| Intrinsic Value | $12.2 |
| 1Y Return | -31.0% |
| Revenue | $195.9M |
| Free Cash Flow | $5,029.0K |
| Revenue Growth | (0.7%) |
| FCF margin | 2.6% |
| Gross margin | (47.0%) |
| ROIC | 1.3% |
| Total Debt to Equity | (1,523.4%) |
Investment Thesis
Reading International, Inc. (RDI), micro cap $24.8M, Quality 5.2, intrinsic $12.2. Flat revenue (0.7%) to $195.9M, minimal FCF $5,029.0K (2.6% margin), negative gross margins -47.0%, low ROIC 1.3%. Extreme negative debt -1,523.4% and -31.0% 1Y Return highlight distress.
Niche RDI analysis for turnaround plays.
Key Catalysts
- Intrinsic value potential $12.2
- Positive FCF albeit small
- Entertainment sector rebound potential
Risk Factors
- Negative gross margins -47.0%
- Extreme debt structure -1,523.4%
- Poor returns (-31.0% 1Y)
Portfolio Diversification Insights
This stock watchlist clusters around publishing/media (NWS, NYT, PSO, WLY, GCI, RDI ~60% allocation) for digital content exposure, with complements in energy (TXNM), consumer staples (POST), recreational products (PII), and tech (API). High-quality leaders like NYT (7.8 rating) balance lower-rated small caps like RDI 5.2. Debt varies widely—debt-free NYT offsets leveraged POST/PII—while ROIC standouts (PSO 28.0%, NYT 26.1%) drive returns. Sector mix reduces media-specific risks, enhancing portfolio diversification across market caps from $24.8M to $17.4B.
Market Timing & Entry Strategies
Consider entry on dips below intrinsic values, such as NWS under $16.3 or NYT near $32.5, amid publishing ad recovery or rate cuts boosting leveraged names like POST. Monitor revenue growth inflection (e.g., NYT's 8.4%) and FCF trends for confirmation. Dollar-cost average into diversified baskets, targeting 5-10% allocation per stock, with exits on sustained ROIC erosion. Use ValueSense tools for real-time market timing in these undervalued stocks.
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FAQ Section
How were these stocks selected?
These 10 best stock picks were chosen using ValueSense criteria: Quality ratings >5.0, intrinsic values above implied prices, and balanced metrics like FCF, ROIC, and margins, focusing on undervalued publishing/media firms.
What's the best stock from this list?
NYT leads with 7.8 Quality rating, 26.1% ROIC, zero debt, and 35.6% 1Y Return, making it a standout in stock picks for growth and efficiency.
Should I buy all these stocks or diversify?
Diversify across the list's sectors (media 60%, energy/consumer 40%) to mitigate risks like revenue declines; avoid concentrating in high-debt names like GCI.
What are the biggest risks with these picks?
Key concerns include revenue contractions (e.g., NWS -16.4%), high debt (GCI 597.1%), and negative FCF/ROIC in TXNM/API, amplifying sector and cyclical vulnerabilities.
When is the best time to invest in these stocks?
Target entries when prices lag intrinsic values during market pullbacks or positive catalysts like revenue growth (NYT 8.4%), using phased positioning for investment opportunities.