VCI up 85% for the year
Valassis Communications (VCI) shares may be set up for a rally.
Valassis Communications is one of the country’s leading marketing services companies. It operates primarily in four segments: Shared Mail, Neighborhood Targeted, Free-standing Inserts and International Digital Media.
The stock has been a very strong performer, up 85% so far this year. On April 29th Valassis reported first quarter earnings that were much higher than analysts estimates. After the quarter, Zacks Investment Research raised its current year earnings estimates for Valassis to $1.86 a share from $1.79.
Out of the 264 industries it follows Zacks ranks Valassis as the top-rated company in the 5th ranked industry. It recommends the stock as a strong buy.
However, the stock has sold off sharply over the last eight days and we think on a short-term basis it’s oversold enough to be good for a rally that may test the June highs around $38 a share. VCI closed today at 33.85. That’s a good entry price with a short-term target of 38.61.
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