Can The Washington Post Company (WPO) Make the Grade in the 21st Century?

This is the kind of decisive, action-oriented proactive move that Wall Street wants to see from the Post. The Street rewarded ambitious Gannett as its stock price roared 27% to a five-year high, adding more than $5 and breaking past the $25 barrier.

The Washington Post Company (NYSE:WPO)’s shares have jumped about 57% in the past year, but continued growth may be a challenge. Morningstar analyst Liang Feng told me this week that he regards the Post’s shares now as being “fairly valued.”

To get Wall Street excited down the road, the Post will likely have to increase its broadcasting presence, as rival Gannett Co., Inc. (NYSE:GCI) did a few months ago.

“The Washington Post Company (NYSE:WPO). has benefited from the improved sentiment in broadcasting and we would look at them to expand,” Feng said. “However, the company has less scale than some broadcast peers.”

As Feng pointed out, the Post would benefit from increasing its strength in broadcasting because that would enable the company to command higher premiums.

Where does all of this leave the Post’s shareholders?

A Wall Street analyst once summed it up for me when he said, with a wan smile, that the Washington Post would be a terrific investment — if that darned newspaper didn’t weigh it down.