Gannett Co., the owner of television stations and 82 daily newspapers including USA Today, jumped the most in more than two months as the U.S. presidential election helps spur demand for advertising.
Gannett, based in McLean, Virginia, rose 4.3 percent to $17 at the close in New York, the biggest gain since June 26.
The stock is undervalued, partly because investors overstate Gannett’s dependence on the declining print industry, said James Goss, an analyst with Barrington Research Associates Inc. in Chicago. Gannett’s local TV stations have benefited from demand for advertising during the Olympics and the presidential race, he said. Gannett also has a controlling stake in the jobs website CareerBuilder.com.
“This has been a value name for us,” said Goss, who recommends buying the shares. “They’re not just dependent on print circulation.”
Shares of the company, which is marking the 30th anniversary of USA Today this month, have climbed 27 percent this year.