Scripps Networks Interactive
01/14/2014 8:00 am EST
I like content companies, explains Chuck Carlson, editor of DRIP Investor. For his top growth stock pick for 2014, the advisor turns to the broadcasting sector.
Scripps Networks Interactive (SNI) has some of the most interesting brands in the broadcasting space. It is one of the leading providers of lifestyle content in the home, food, and travel categories for television and the Internet.
The firm runs HGTV, DIY Network, Food Network, and Travel Channel. The company's popular television and Internet brands collectively reach more than 170 million consumers each month.
I expect that viewership to all of its channels will continue to be strong, driven, in part, by an improved housing market.
I look for decent earnings growth in 2014. Enhancing appeal is the company's takeover appeal. The company's market capitalization is under $11 billion, which puts it well within the sights of larger entertainment companies (think Disney here) searching for strong cable brands.
I am a fan of the company's products and its stock. True, Scripps Networks is not a cheap stock. Still, I believe the stock will continue to warrant a premium valuation, given its strong brands and growth profile. The stock should outperform the broad market in 2014.
Please note: Scripps Networks offer a direct-purchase plan, whereby any investor may buy their first share, and every share of stock, directly from the company.