The Best Stock in Tennessee: Scripps Network Interactive

We scoured the nation to identify the best stock in every state. Scripps Network Interactive (symbol SNI) is the publicly traded company we picked in Tennessee. The company headquarters is located in Knoxville.

A word of caution: Since we selected a single stock from each state (plus one from D.C), and choices in some states are sparse, a few of our picks are best suited to investors comfortable with a higher degree of risk. This is not necessarily one of our 51 favorite stocks in the entire U.S., in other words.

Scripps Network Interactive by the Numbers

• Headquarters: Knoxville
• Share price: $66.61
• Market value: $8.6 billion
• Price-earnings ratio: 12

(Prices and data are as of June 22, 2017)

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Scripps owns Food Network, HGTV, DIY Network and the Cooking Channel, along with other national television networks. The company owns 98% of the content it airs on its channels, and it produces programming more cheaply than competitors. Scripps spends $550 million annually to create 2,500 hours of content, less than half of what Discovery Communications spends for roughly the same number of hours. Scripps recently inked a deal to bring new short-form programming to Snapchat, in hopes of reaching the next generation of viewers, but its bread and butter comes from its core viewership of wealthy, 24- to 54-year-old women – a lucrative demographic for advertisers. Scripps derives 68% of revenues from ad sales. A recent study found that more than 30% of viewers of both Food Network and HGTV were likely to buy products advertised on the network, “making the channels the most influential in the U.S.,” according to research from Morningstar. CFRA analyst Tuna Amobi rates the stock a “buy” with a 12-month price target of $80.