Below are the three companies in the Advertising industry with the highest earnings yields. Earnings yield is useful to compare the relative benefit of owning a stock vs. owning other yield assets such as bonds. If the earnings yield is higher, stocks may be considered undervalued.
Harte-Hanks (NYSE:HHS) is highest with an earnings yield of 7.6%. Harte-Hanks, Inc. owns and operates a direct marketing company that provides a full range of specialized, coordinated, and integrated direct marketing services to companies in a wide variety of industries. The Company's customers are located in the United States and other countries. Harte-Hanks also publishes shopper publications which are highly targeted advertising vehicles.
Potential upside of 3.1% exists for Harte-Hanks, based on a current level of $7.76 and analysts' average consensus price target of $8.00. Harte-Hanks shares have support at the 50-day moving average (MA) of $7.37 and additional support at the 200-day MA of $6.95.
Following is Focus Media Holding (NASDAQ:FMCN) with an earnings yield of 6.5%.
Finishing up the top three is Interpublic Group of Cos (NYSE:IPG), with an earnings yield of 6.3%.