Grab These 3 Broadcast Stocks Before They Soar 30% or More!

Stocks

Stock	Price	52 Week Range	Marketcap	EPS	Dividend Yield	Chart (24H)	Sector	Employees	Last Updated
Sinclair, Inc. SBGI	$13.02		905.82M	2.04	7.54%		Communication Services	7,300	9 minutes ago
340188 BLC	$0.0000		0.0000	0.00	0.00%			0	6 years ago
Nexstar Media Group, Inc. NXST	$165.77		5.00B	19.61	4.40%		Communication Services	11,877	9 minutes ago

With the economy gradually rebounding and consumer confidence on the rise, savvy investors are seeking out sectors poised for significant growth. The broadcast sector, in particular, is catching the eyes of market watchers, powered by increasing advertising spending and pivotal upcoming events such as the mid-term elections, the FIFA World Cup, and the Winter Olympics in 2014. These factors combine to create a promising backdrop for a few selected broadcast stocks that are currently signaling strong buy opportunities.

As we navigate through economic resiliency, one sector showing robust growth prospects is broadcasting. During economic downturns, advertising budgets are usually the first to see cuts. Conversely, a recovering economy often brings a surge in ad spending as businesses strive to attract optimistic consumers. The significance of this cannot be understated for the broadcasting sector, where advertising revenue is a primary profit driver.

The recent rise in consumer confidence numbers surprised Wall Street, signaling that consumers are increasingly optimistic about the economy. This broader sense of economic improvement sets the stage for heightened advertising spending as companies prepare for a better financial year ahead.

With this backdrop, three broadcast stocks have emerged as standout “buy” recommendations based on their strategic initiatives and market positions. Let’s delve into each.

Editor’s Note: Analysis and insight for this article were originally sourced from our friends at InvestorPlace

Sinclair, Inc.

SBGI

$13.02

2%

First up is Sinclair Broadcasting Group (NASDAQ: SBGI). Known for its ambitious expansion endeavors, SBGI recently made headlines by acquiring Fisher Communications, a move that significantly bolsters its portfolio with the addition of 20 television stations and three radio outlets. This acquisition propels Sinclair’s footprint, adding valuable market territories and further reinforcing its status as a broadcasting powerhouse.

SBGI now commands an impressive array of 65 TV stations across 39 markets, a footprint indicative of its aggressive growth strategy. Sinclair’s proactive moves have not gone unnoticed. The company’s stock has doubled year-to-date as of May 2013, underscoring the market’s confidence in its strategies.

Sinclair’s financial health is underlined by its “A” grade from Portfolio Grader, signaling a solid “strong buy” recommendation. This top-tier rating underscores the company’s robust performance and future growth potential, making SBGI a compelling addition to any investment portfolio.

• Average Price Target: The average price target across different sources ranges from $14.03 to $18.14, with a median of around $15.50.
• Potential Gain: The potential gain, based on these price targets, ranges from 1.97% to 29.29%.
• Consensus Ratings: Most sources indicate a Hold or Neutral consensus rating, implying a relatively steady outlook on the stock.

340188

BLC

$0.0000

0%

Next, we have Belo Corp. (NYSE: BLC), a stalwart in the broadcasting realm with 20 television stations and various websites across 15 markets. BLC‘s strategic positioning allows it to reach nearly 15% of the national television market, a testament to its significant presence and influence.

Belo not only covers a wide market but also partners with all major networks, providing it with a diversified portfolio. This broad coverage and partnership are crucial for capturing a large share of advertising revenue. The company owns three local channels and two regional news networks, strengthening its regional engagement and influence.

What truly sets Belo apart is its consistent performance, having exceeded Wall Street estimates for four consecutive quarters. This track record of outperformance is a strong indicator of the company’s operational resilience and market competency. Analysts have been progressively raising their financial estimates for the company, further reflecting their confidence in Belo’s future performance.

Given BLC‘s solid financial figures and upward-trending estimates, Portfolio Grader has elevated the stock to a “strong buy.” The continuous improvements in Belo’s financial outlook are promising, indicating the potential for sustained revenue growth, especially with the increase in advertiser spending. The latest upgrade is a testament to the company’s robust fundamentals and growing market presence.

• Consensus Rating: The consensus rating for BLC is Hold.
• Average Price Target: The average price target is €30.17, with a higher maximum estimate of €35.00 and a lower minimum estimate of €25.50.
• Potential Gain: The potential gain based on the average price target is approximately 4.7% as of the current price.
• Number of Ratings: There are only three analyst ratings available for BLC in the past three months.

Nexstar Media Group, Inc.

NXST

$165.77

2%

Finally, Nexstar Broadcasting Group (NASDAQ: NXST) comes into focus with its formidable portfolio. NXST owns or provides services to 72 stations in 18 markets, representing over 12% of the TV broadcast audience. This reach is augmented by its dual-service offerings in more than 60% of its markets. This model allows Nexstar to provide news, service, or sales support to a second station, increasing its revenue potential from a single market.

Nexstar’s recent acquisition of 19 additional stations further strengthens its market presence, expanding its operational base in 10 markets. This strategic expansion has underpinned the company’s recent record results, showcasing its growth trajectory and operational excellence. Particularly noteworthy is its ability to capture more significant market share through strategic media deals, which is critical in a competitive landscape.

Portfolio Grader has consistently rated NXST highly since early 2013, maintaining its “strong buy” status. This continued high rating reflects Nexstar’s robust market strategy and the strong future prospects driven by improved economic conditions and significant upcoming events. The record results highlight Nexstar’s capability to not only sustain but also grow its operational footprint in a recovering economy.

• Consensus Rating: Most analysts, including Deutsche Bank Securities, Wells Fargo Securities, Rosenblatt Securities, Citigroup, Barrington Research, Guggenheim, and Benchmark Capital, recommend a Buy for Nexstar Media Group, Inc. (NXST).
• Earnings and Revenue Expectations: Nexstar Media Group has a mixed performance relative to its industry. The company generally underperforms its industry in earnings and sales forecasts, as it beat its EPS estimate 50.00% of the time, while its overall industry beat the EPS estimate 54.09% of the time. It also underperformed in sales estimates, beating them 25.00% of the time, while its overall industry beat sales estimates 58.20% of the time.

In light of the gradually improving economy, the broadcast sector stands poised for growth, primarily fueled by the anticipated upswing in advertiser spending. Sinclair Broadcasting Group, Belo Corp., and Nexstar Broadcasting Group are leading the charge, each leveraging their strategic positions and market expansions to seize the benefits of this promising landscape.

These companies already have strong fundamentals, and the prospect of increased advertiser dollars only brightens the picture for the rest of the year. As the economy recovers and significant global events draw nearer, investors looking for robust growth opportunities should consider these top-ranked stocks for their portfolios.

For investors keen on tapping into the upside of a recovering economy and burgeoning advertising expenditures, these broadcast stocks offer compelling growth opportunities. By staying ahead of macroeconomic trends and key events, Sinclair, Belo, and Nexstar present themselves as top picks for a well-balanced and forward-looking investment portfolio.