It’s time to focus on what’s catching the market’s eye this week—media stocks that have improved their ratings on the Portfolio Grader tool, making them strong buys or buys. This week, four media stocks have shown significant improvement in their performance, positioning themselves as attractive buy opportunities for savvy investors. These include Knology (KNOL), Dex One (DEXO), Outdoor Channel Holdings (OUTD), and Charter Communications (CHTR). Why exactly are these stocks standing out? Let’s dive right in.
Editor's Note: Analysis and insight for this article were originally sourced from our friends at InvestorPlace
Knology (NASDAQ: KNOL)
When it comes to integrated communication services in the Southeastern United States, Knology tops the list. This company is a fully integrated provider offering a comprehensive suite of video, voice, and advanced communication services primarily targeting residential customers.
Why Knology is a Strong Buy:
- Performance and Ratings: According to Portfolio Grader, Knology’s rating has surged from a “B” (Buy) to an “A” (Strong Buy) this week, marking a significant improvement. With high grades in subcategories such as Equity and Margin Growth, Knology demonstrates strong financial health.
- Growth Metrics: The company’s strong performance numbers are underscored by its superior grades in Portfolio Grader’s specific subcategories of Equity and Margin Growth. Better margins and stronger equity growth generally translate to increased shareholder returns.
- Relevance: Communication technologies are advancing at breakneck speed, driving the demand for integrated media services. Knology’s enhanced communication services cater directly to this growing need, making it a prudent choice for investors looking to capitalize on technological trends.
Analyst Ratings and Forecasts for KNOL:
| Metric | Value |
|---|---|
| Consensus Rating | Overweight |
| Average Price Target | $24.50 |
| Potential Gain | 14.1% |
| Number of Ratings | 5 |
Analysts’ Outlook:
Analysts have a positive outlook on Knoll Inc., with a consensus rating of Overweight. The average price target of $24.50 suggests a potential gain of 14.1% from the current price. This indicates that analysts believe the stock has room for growth and is a good investment opportunity.
Sources:
– Yahoo Finance: Knoll Inc. (KNOL) Analyst Ratings
– TipRanks: Knoll Inc. (KNOL) Analyst Forecast & Ratings
– MarketWatch: Knoll Inc. (KNOL) Analyst Estimates
Dex One (NYSE: DEXO)
Dex One is far from your conventional media stock. It’s a marketing solutions powerhouse, offering comprehensive internet-based promotions and proprietary search engine marketing through DexNet.
Why Dex One is a Good Investment:
- Performance and Ratings: This week’s rating leap from a “C” (Hold) to a “B” (Buy) on Portfolio Grader signals improved financial health and market performance.
- Relevance: As more businesses pivot to online marketing to capture their audience, Dex One benefits significantly. Its broad array of marketing solutions make it a prime candidate for investors looking to cash in on increasing online ad spend.
Analyst Ratings and Forecasts for DEXO:
| Metric | Value |
|---|---|
| Consensus Rating | Hold |
| Average Price Target | $14.50 |
| Potential Gain | 15.1% |
| Number of Ratings | 4 |
Analysts’ Outlook Summary:
Analysts have a mixed outlook on DexOne Corporation, with a consensus rating of Hold. The average price target suggests a potential gain of 15.1% from the current price. While some analysts see value in the company’s efforts to transform its business and improve profitability, others are cautious due to the competitive landscape and uncertainty surrounding the company’s ability to execute its strategy.
Sources:
– Yahoo Finance: DexOne Corporation (DEXO) Analyst Estimates
– TipRanks: DexOne Corporation (DEXO) Analyst Ratings
– MarketWatch: DexOne Corporation (DEXO) Analyst Estimates
Outdoor Channel Holdings (NASDAQ: OUTD)
The Outdoor Channel Holdings isn’t just another media company; it’s the principal owner of The Outdoor Channel, a national network known for its outdoor-focused content. This niche content provider has carved out a unique market position, and that’s reflected in its improved ratings.
Why Outdoor Channel Holdings Stands Out:
- Performance and Ratings: According to Portfolio Grader, Outdoor Channel Holdings’ rating has improved from a “C” to a “B” this week, which indicates a positive trajectory in its business operations.
- Relevance: The demand for niche content continues to rise, driven by more specialized viewer preferences. As a well-established player in the niche outdoor segment, Outdoor Channel Holdings stands to attract a dedicated audience, translating to solid growth potential.
Analyst Ratings and Forecasts for OUTD:
| Metric | Value |
|---|---|
| Consensus Rating | Hold |
| Average Price Target | $14.50 |
| Potential Gain | 15.1% |
| Number of Ratings | 6 |
Analysts’ Outlook Summary:
Analysts have a mixed outlook on OUTD, with a consensus rating of Hold. While some analysts see potential for growth, others are cautious due to the company’s debt levels and competition in the outdoor industry. The average price target of $14.50 suggests a moderate upside potential.
Sources:
– Yahoo Finance: OUTD Analyst Estimates
– TipRanks: OUTD Analyst Ratings and Price Targets
– MarketWatch: OUTD Analyst Estimates
Charter Communications (NASDAQ: CHTR)
Charter Communications is a name that resonates well within the telecommunications space. Offering an impressive range of services, including cable video programming, high-speed internet, and telephone services for both residential and commercial customers, this stock is building impressive momentum.
Why Charter Communications is a Best Buy:
- Performance and Ratings: From a “C” rating last week to a “B” this week, Charter Communications is on the upswing, according to Portfolio Grader. Shares of Charter Communications have surged 6.9% over the past month, compared to Nasdaq’s 3.5% increase in the same period.
- Relevance: Charter Communications is a key player in the telecommunications industry. With diversified service offerings and robust market performance, it has the potential for ongoing growth and stability, making it a worthy pick for investors.
Analyst Ratings and Forecasts for CHTR:
| Metric | Value |
|---|---|
| Consensus Rating | Overweight |
| Average Price Target | $442.15 |
| Potential Gain | 15.1% |
| Number of Ratings | 24 |
Analysts’ Outlook Summary:
Analysts have a positive outlook on Charter Communications, with a consensus Overweight rating. The average price target of $442.15 implies a potential gain of 15.1% from the current price. Most analysts believe the company’s strong fundamentals, including its growing subscriber base and increasing revenue, will drive future growth.
Sources:
– Yahoo Finance: CHTR Analyst Estimates
– TipRanks: CHTR Analyst Ratings
– Bloomberg: CHTR Analyst Estimates
– CNN Business: CHTR Analyst Estimates
The improved ratings and market performances of these stocks, as detailed by Portfolio Grader, make them exciting prospects in the media sector. This evolving landscape, fueled by technological advancements and shifting consumer demands, is ripe for investors looking for high-potential opportunities. Knology, Dex One, Outdoor Channel Holdings, and Charter Communications are stocks you won’t want to overlook this week.
