The company is seeing lower advertising revenue at its 82 newspapers, including its flagship paper, USA Today. That’s mainly because its 2010 revenue benefited from advertising tied to the U.S. midterm elections. However, the company’s revenue from its digital operations, such as CareerBuilder.com and newspaper web sites, rose 12.6% in the quarter.

Earnings fell 13.5 %, to $151.5 million, or $0.62 per share, from $175.2 million, or $0.73 per share. The company’s publishing earnings were hurt by a 9.3% increase in newsprint costs. To cut costs, the company announced in June 2011 that it will cut 700 jobs, or 2% of its workers.

Gannett is a dividend paying stock. Its annual rate of $0.32 a share yields 2.3%. The company also plans to resume buying back its own shares.

Gannett is just one of the U.S. stock market investments we analyze in our Wall Street Stock Forecaster newsletter. You can get the latest issue, along with 5 in-depth Special Reports, access to our weekly Email/Telephone Hotlines (which keep you up to date on our U.S. stock market investments between issues) and much more absolutely FREE when you subscribe now. Click here to get started right away.

Earnings fell 16.3% in the quarter, to $0.41 a share from $0.49. These figures exclude costs related to job cuts and closing facilities. These moves cut Gannett’s operating costs by 2.2% in the latest quarter.

Gannett is a buy.

GENERAL ELECTRIC CO. $21 (New York symbol GE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 10.6 billion; Market cap: $222.6 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.ge.com) continues to benefit from falling loan losses at its lending division. It’s also seeing strong demand for its jet engines, locomotives and medical-imaging equipment.

In the first quarter of 2011, GE’s earnings per share jumped 65.0%, to $0.33 from $0.20 a year earlier. Revenue rose 6.2%, to $38.4 billion from $36.2 billion. GE also raised its dividend by 7.1%. The new annual rate of $0.60 a share yields 2.9%.

GE is a buy.

BUCKEYE PARTNERS L.P. $65 (New York symbol BPL; Income Portfolio, Utilities sector; Units outstanding: 92.1 million; Market cap: $6.0 billion; Price-to-sales ratio: 1.9; Dividend yield: 6.1%; TSINetwork Rating: Average; www.buckeye.com) has agreed to buy 33 oil-storage terminals in the U.S. from BP plc (New York symbol BP). The deal also includes roughly 1,600 kilometres of pipelines. The $225-million purchase price is equal to 5.2 times the $43.1 million, or $1.65 a share, that Buckeye earned in 2010.

To pay for these assets, the partnership plans to raise $327.9 million by selling units. That will increase the total outstanding by 6%.

Buckeye Partners is still a hold.

Demand for money transfers continues to rise as the global economy recovers. As a result, Western Union’s cash flow should be around $1 billion for all of 2010. That gives it plenty of room to keep buying back shares; it spent $511.2 million on share repurchases in the first nine months of 2010. (Share buybacks increase per-share earnings and give the remaining shareholders a larger stake in the company.)

Western Union recently raised its quarterly dividend by 16.7%, to $0.07 a share from $0.06. The new annual rate of $0.28 yields 1.5%.

Western Union is a buy.

GANNETT CO. INC. $15 (New York symbol GCI; Conservative Growth Portfolio, Consumer sector: Shares outstanding: 238.9 million; Market cap: $3.6 billion; Price-to-sales ratio: 0.7; Dividend yield: 1.1%; TSINetwork Rating: Average; www.gannett.com) is seeing higher advertising revenue at its community newspapers and web sites. (The company owns 82 newspapers, including its flagship paper, USAToday.) As well, rising car sales are spurring ad sales at its 23 TV stations.

As a result, the company feels its earnings in the fourth quarter of 2010 will beat the consensus estimate of $0.77 a share. Gannett will probably earn $2.42 a share for the entire year. The stock trades at just 6.2 times that figure.

Gannett is a buy.

PETSMART INC. $39 (Nasdaq symbol PETM; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 117.6 million; Market cap: $4.6 billion; Price-to-sales ratio: 0.8; Dividend yield: 1.3%; TSINetwork Rating: Above Average; www.petsmart.com) operates 1,172 pet stores in the U.S. and Canada. It also has 172 in-store PetHotels, which look after pets while their owners are away from home.

In its third quarter, which ended October 31, 2010, PetSmart’s earnings rose 19.8%, to $45.6 million from $38.1 million a year earlier.

The company spent $56.0 million on share buybacks during the quarter. Because of fewer shares outstanding, earnings per share rose 22.6%, to $0.38 from $0.31.

Sales rose 7.2%, to $1.4 billion from $1.3 billion. Same-store sales rose 5.6%, while sales of pet services, such as grooming and PetHotel stays, rose 8.5%. Services accounted for 10.7% of PetSmart’s revenue. That’s up from 10.6% a year earlier.

PetSmart is a buy.

Meanwhile, Gannett’s earnings per share rose 32.6% in the three months ended June 27, 2010, to $0.61 from $0.46 a year earlier. Savings from job cuts were the main reason for the higher earnings. Revenue fell 1.6%, to $1.37 billion from $1.39 billion.

Gannett is a buy.

Online newspapers face strong competition from free Internet news sources. But USA Today aims to use exclusive content to attract online subscribers. As well, unlike the print version, the online edition will publish a weekend edition. Moreover, online publishing is cheaper than printing and delivering newspapers, so Gannett needs fewer subscribers to earn a profit on this project.

Gannett is a buy.

THE BOEING CO. $41 (New York symbol BA) has increased its quarterly dividend by 5.0%, from $0.40 a share to $0.42. It now yields 4.1%. Buy.

PROCTER & GAMBLE CO. $61 (New York symbol PG) hoped to increase its revenue by 4% to 6% in its second fiscal quarter ending December 31, 2008. However, it will probably fall short of that goal as retailers cut inventories in the face of slowing sales. Still, Procter is one of the world’s largest advertisers, and it is now using its clout to negotiate lower ad rates. Buy.

Most outsourcing contracts run from 5 to 10 years. That gives CGI steady, predictable revenue streams. Long-term contracts also give CGI time to build close relationships with its clients. That helps it retain those clients, and sell them more services.

CGI’s revenue grew from $3.2 billion in 2004 to $3.7 billion in 2008 (fiscal years end September 30). Earnings rose from $0.44 a share (total $185.4 million) in 2004 to $0.92 a share ($297.9 million) in 2008. However, the 2008 earnings included $26.6 million in unusual income tax gains.

Backlog now over 3 years’ revenue

In the latest fiscal year, the company booked $4.15 billion in new contracts, extensions and renewals. CGI’s order backlog of $11.6 billion is now equal to 3.1 times its fiscal 2008 revenue.

The financial services industry accounts for about a third of CGI’s revenue. That could hurt its future growth, as the problems in the finance sector prompt some banks to fold or merge with others. However, demand should remain strong. That’s because CGI’s services help banks lower their operating costs. Integrating different computer systems at merging banks could also create more opportunities for the company.

Non-cyclical clients cut CGI’s risk

CGI gets roughly a third of its revenue from non-cyclical government agencies and healthcare organizations. That helps offset its exposure to the finance sector. The company also gets 20% of its revenue from less-cyclical telecommunications companies and utilities.

The company spends roughly 2% of its revenue of $11.50 a share on research. That hurts CGI’s profits, but helps it compete in the rapidly changing industry in which it operates.

CGI does not pay a dividend. Instead, it uses some of its excess cash to pay down debt. In fiscal 2008, long-term debt fell to $290.2 million from $463.4 million in the prior year. It’s now equal to just 10% of CGI’s market cap. CGI also holds cash of $50.1 million or $0.16 a share.

The company also spent $216.2 million on share repurchases in the latest fiscal year. Share buybacks boost per share earnings and increase the proportionate ownership of the remaining stockholders.

Low p/e enhances its appeal

CGI’s shares have moved down from their peak of just over $12 in June, 2007 to $8.30 in October, 2008, mainly due to the slowing economy. The stock now trades at just 9.4 times the $0.96 a share that GCI will probably earn in fiscal 2009.

CGI Group is a buy.

Ad sales should pick up later this year, due to the Olympics and the presidential election. Gannett could also take advantage of the current slowdown to expand its print and Internet operations.

Gannett is still a buy for long-term gains.

CGI provides day-to-day maintenance and improvement for clients’ business applications, and integrates and customizes technologies and software applications. The company also manages back-office business processes and transactions. North America accounts for over 90% of its revenue.

CGI is a former subsidiary of BCE Inc., and BCE is its largest client at roughly 14% of total revenue.

In its first fiscal quarter ended December 31, 2007, earnings rose 22.2% to $0.22 a share (total $72.6 million) from $0.18 a share ($58.4 million) a year earlier. That’s due to the company’s strategy of focusing on higher profit margin contracts. Cash flow per share rose 13.3%, to $0.34 from $0.30. Revenue rose just 1.2%, to $914.7 million from $904.1 million. If you exclude the negative impact of the higher Canadian dollar, revenue would have grown 6.1%.

CGI booked $1.15 billion of new contracts, extensions and renewals in the latest quarter. That included a $91.8 million, three-year deal to provide engineering and technical management services to Canada’s Public Works department. It also includes a $10 million U.S. contract with the U.S. Internal Revenue Service.

CGI provides technology services instead of designing new hardware, so its research costs are much lower than those of Nortel and Gennum. CGI’s research spending rose 4.5% in the latest quarter, to $7.0 million (0.8% of revenue) from $6.7 million (0.7% of revenue).

A slowing economy could hurt CGI’s growth. However, recurring revenue from long-term outsourcing contracts, especially with government agencies, cuts its risk. CGI’s order backlog at December 31, 2007 was $12 billion, which is equal to just over three year’s revenue.

CGI should earn $0.92 a share in fiscal 2008, and the stock trades at just 13.0 times that figure.

GCI Group is a buy.

GENNUM CORP. $9.05 (Toronto symbol GND; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 35.6 million; Market cap: $322.2 million; SI Rating: Above average) makes equipment that lets broadcasters store, manipulate and transport video signals without losing picture quality. This business accounts for 75% of Gennum’s total revenue. The company also makes chips for computer networks.

Gennum recently completed a major realignment of its operations. It sold its slow-growing hearing aid and headset businesses, as well as part of its video chip operations.

The company used the proceeds of around $25 million U.S. to finance its $25.3 million U.S. purchase of privately held Snowbush Microelectronics, a Toronto-based developer of technologies that help chip-makers improve the speed and reliability of data transmissions inside computers and other electronic devices. Snowbush’s expertise will help Gennum design better high-speed data and video chips.

In its first fiscal quarter ended February 29, 2008, Gennum’s revenue grew 32.0%, to $30.1 million from $22.8 million a year earlier (all amounts in U.S. dollars except share price and market cap). Snowbush contributed $2.1 million to the most recent quarter. However, earnings fell 23.5%, to $0.13 a share (total $4.6 million) from $0.17 a share ($6.2 million), due to higher marketing costs and income taxes.

Gennum continues to spend heavily on research. In the latest quarter, research costs rose 98%, to $9.9 million (32.8% of revenue) from $5.0 million (22.1% of revenue) a year earlier. Snowbush accounted for $2.0 million of that increase.

This spending has let Gennum launch several successful new products in the past few months, particularly video equipment that handles high-definition (HD) TV signals. Sales of HD equipment grew 14% in the most recent quarter, as broadcasters in the United States prepare to switch from analog to digital transmissions in February 2009. New computer network equipment also helped fuel sales.

Gennum’s long-term debt of $2.6 million U.S. is less than 10% of its annual cash flow. It also has $47 million U.S. or $1.32 U.S. a share in cash. That gives it plenty of room to make acquisitions or expand research.

The company will likely earn $0.71 U.S. a share in fiscal 2008, and the stock trades at 12.5 times that estimate. It’s also attractive at 2.2 times its revenue of about $4.00 U.S. a share. The $0.14 (Canadian) dividend yields 1.5%.

Gennum is a buy.

NORTEL NETWORKS CORP. $7.26 (Toronto symbol NT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 437.2 million; Market cap: $3.2 billion; SI Rating: Speculative) is one of the world’s largest makers of telecommunications equipment. The company sells its products mainly to telephone companies, cable TV operators and large organizations.

The telecom industry is highly competitive, and recent mergers among telecom equipment suppliers have driven down prices. The slowing economy has also prompted telephone companies and corporations to maintain their current networks instead of investing in new equipment.

In 2007, Nortel lost $957 million or $1.98 a share (all amounts except share price and market cap in U.S. dollars). That figure included a $1.1 billion (pre-tax) non-cash writedown of a deferred tax asset. Excluding all one-time items, Nortel earned $0.37 a share in 2007. The company earned $28 million or $0.06 a share in 2006.

Revenue fell 4.4%, to $10.9 billion from $11.4 billion, as it shifts from traditional telephone networking equipment to higher-margin wireless products and other technologies.

Nortel cut its research spending 10.5% in 2007, to $1.7 billion (15.7% of revenue) from $1.9 billion (17.0% of revenue) in 2006. That’s because it’s shifting research spending away from supporting older products to new, emerging technologies.

The company continues to cut its costs in the face of weak sales growth. Nortel’s latest restructuring will cut its work-force by 6%, and shift more operations overseas. It will cost roughly $525 million, but should reduce annual expenses by $300 million.

Despite its problems, Nortel’s improving balance sheet will help it overcome these setbacks. While long-term debt fell 13.6% in 2007, to $3.8 billion from $4.4 billion, that’s still high at 1.1 times its market cap. However, Nortel also holds cash of $3.6 billion or $8.25 a share.

The stock is down 70% from its recent peak of $29 in May 2007. The company will probably earn $0.50 U.S. a share before one-time items in 2008, and the stock trades at 14.3 times that figure. However, Nortel will likely make little progress until the overall economy improves.

Nortel is a hold.

CGI GROUP INC. $12 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 323.6 million; Market cap: $3.9 billion; SI Rating: Speculative) is one of the largest independent information technology and business process services firms in North America.

CGI provides day-to-day maintenance and improvement for clients’ business applications, and integrates and customizes technologies and software applications. The company also manages back-office business processes and transactions. North America accounts for over 90% of its revenue.

CGI is a former subsidiary of BCE Inc., and BCE is its largest client at roughly 14% of total revenue.

In its first fiscal quarter ended December 31, 2007, earnings rose 22.2% to $0.22 a share (total $72.6 million) from $0.18 a share ($58.4 million) a year earlier. That’s due to the company’s strategy of focusing on higher profit margin contracts. Cash flow per share rose 13.3%, to $0.34 from $0.30. Revenue rose just 1.2%, to $914.7 million from $904.1 million. If you exclude the negative impact of the higher Canadian dollar, revenue would have grown 6.1%.

CGI booked $1.15 billion of new contracts, extensions and renewals in the latest quarter. That included a $91.8 million, three-year deal to provide engineering and technical management services to Canada’s Public Works department. It also includes a $10 million U.S. contract with the U.S. Internal Revenue Service.

CGI provides technology services instead of designing new hardware, so its research costs are much lower than those of Nortel and Gennum. CGI’s research spending rose 4.5% in the latest quarter, to $7.0 million (0.8% of revenue) from $6.7 million (0.7% of revenue).

A slowing economy could hurt CGI’s growth. However, recurring revenue from long-term outsourcing contracts, especially with government agencies, cuts its risk. CGI’s order backlog at December 31, 2007 was $12 billion, which is equal to just over three year’s revenue.

CGI should earn $0.92 a share in fiscal 2008, and the stock trades at just 13.0 times that figure.

GCI Group is a buy.