If Amazon (NASDAQ:AMZN) is doing so well, as sales and earnings are up substantially, a lot of books must be selling. Of course, Amazon also sells watches, handbags, DVD’s, toys, tools, and toasters, but their mainstay is books. So, if it is selling a lot of books, then the book publishers must be benefiting. Even the private equity guys are looking at publishers, as Ripplewood Holdings L.L.C. just acquired Reader's Digest in March.
Here are some of the bigger book stocks to watch:
John Wiley & Sons, Inc. (NYSE:JW.A)This Hoboken, New Jersey company, founded in 1807, publishes print and electronic business, education, and technology books. A couple of its famous publishing lines include the Dummies series and CliffNotes. The stock has a P/E 22, a price/sales of 1.95, and a yield of 1.1%.
Courier Corp. (NASDAQ:CRRC) This is one of the largest publishers of educational, religious, and consumer books in the United States. It has a P/E 17.2, a [PEG] of 3.5, and a yield of 1.7%.
McGraw-Hill Companies Inc. (MHP) It publishes education, financial, business books, and information services. It also owns Standard & Poor’s, BusinessWeek magazine and J.D. Power and Associates, in addition to several other divisions. Its P/E is 25, with a [PEG] of 1.7, and a yield of 1.2%.
Pearson plc (NYSE:PSO) This London-based company publishes business and educational textbooks in the United States and Canada. It also publishes The Financial Times newspapers and The Economist magazine. It has a P/E of 24, a [PEG] of 2.1, and a yield of 3.1%.
Scholastic Corp. (NASDAQ:SCHL) It publishes children’s and educational books worldwide. It has a P/E of 22.3, a [PEG] of 1.2, and pays no dividend.
Thomson (TOC) It publishes legal, business, educational books, textbooks, and information services. It has a P/E of 25.5, and a yield of 2.2%.
Disclosure: Author does not own any of the above.