Publishing stocks are shares of companies that publish books, newspapers, magazines, literature, journals, educational materials and other forms of media.
Most folks tend to overlook publishing stocks because they don’t find them as glamorous as tech or exciting startups. Also, there’s a perception that the publishing industry is circling the drain — due to competition from digital platforms.
As such, you’re not likely to find the average investor scouring through financial news to identify which publishing stocks to buy.
Though it had to adapt to inevitable technological shifts (cue e-readers, audiobooks and so on), just like any other industry, the publishing industry is thriving — if the companies below are anything to go by.
If you’re looking to diversify your investment portfolio, publishing stocks could be an interesting option. Here are our top picks for hot publishing stocks to buy this summer.
Educational Development (EDUC)
Educational Development (NASDAQ:EDUC) is a publishing company for children’s books. It sells its books via two business segments. The first is PaperPie — its home business division that sells directly to consumers at parties, book fairs, schools, public libraries and more.
The other segment is a retail division that sells books and educational materials to bookstores, toy stores, specialty shops, museums and other locations.
Though the company has almost nil analyst coverage, it’s one of the best-performing stocks in 2024. After opening the year at the ballpark price of $1.14, EDUC shares are now going for $1.86 a piece — a change of 63% year-to-date (YTD).
And that’s not all. EDUC’s price has more than doubled at various points in the year, returning over 100%. There’s no reason why Educational Development can’t continue with that trajectory throughout the rest of the year. It’s definitely among the best publishing stocks in the market right now.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) has been dubbed “The Everything Company,” thanks to venturing into pretty much nearly every conceivable market and industry, from e-commerce to cloud computing to entertainment to publishing.
The company has Amazon Publishing (APub), whose portfolio includes several imprints across different genres, including AmazonEncore, AmazonCrossing, Thomas & Mercer, Montlake Romance and the e-reader Kindle.
Obviously, Amazon is not a pure-play publishing stock. But it’s one of the best in the market for investors who want exposure to the publishing sector.
Just last week, the company crossed $2 trillion in market cap for the first time, joining just one of four others to do so. Shares of the company have added 30% YTD.
As you’d expect, Wall Street analysts overwhelmingly recommend buying Amazon stock. Out of 65 ratings, 53 recommend buying, with 9 rating it Overweight and just 3 rating it Neutral.
With such a strong market presence and performance, Amazon is a great starting point to dip your toes in publishing stocks.
John Wiley & Sons (WLY)
John Wiley & Sons (NYSE:WLY) is another under-the-radar publishing stock but one you might want to look into this summer. Despite mixed Q4 results for its 2024 fiscal year, the New Jersey-based publisher’s shares have returned over 36% YTD.
The company reported a Research revenue loss of 3% for the fourth quarter and the year but an 18% increase in Learning for the quarter. Its adjusted earnings per share (EPS) also sunk 19% for the fiscal year.
However, it seems the market shrugged off the mixed results and is focusing on the company’s long-term outlook based on its forecasts. The company expects adjusted EPS to reach $3.43 at the midpoint in Fiscal 2025 — a 23% jump. WLY also said it is on target to hit its 2026 goals.
The Wiley company has been around for over two centuries and is one of the most trusted publishing brands in the industry. It has partnerships with household names across different industries, including Microsoft (NASDAQ:MSFT), the Culinary Institute of America, the National Geographic Society and the London School of Economics.
On the date of publication, Hope Mutie did not have (either directly or indirectly) any positions in the stocks mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com’s Publishing Guidelines.
On the date of publication, the responsible editor held a long position in AMZN.
