McGraw-Hill: Textbook Diversity

Publishing is just the start; finance is the key.

Although most people know McGraw-Hill as the publisher of textbooks and BusinessWeek magazine, the company is far more diverse. It owns Standard & Poor's, which rates companies and government entities, compiles stock research, and assembles famous indices. McGraw also has its hands in trade journals, television stations, financial information software, and a consumer-ratings agency.

The company's shares, which had been on a steady climb since August 2006, hovered near $70 on February 8. But the stock (symbol MHP) has since fallen 12%, and closed at $61.86 on March 13, down $2.18 on a day when its most famous index, the S&P 500, tumbled 2%. The stock fell despite an upgrade, to buy from hold, by A.G. Edwards analyst Michael Kupinski, who calls the recent pullback a textbook buying opportunity. Kupinski expects McGraw’s shares to fetch $76 over the next 12 to 18 months.

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Staff Writer, Kiplinger's Personal Finance