| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
 Sinclair, Inc. SBGI | $15.91 | 1.06B | 3.16 | 6.22% | Communication Services | 7,300 | 2 days ago | ||
 340188 BLC | $0.0000 | 0.0000 | 0.00 | 0.00% | 0 | 6 years ago | |||
| $159.93 | 4.96B | 17.22 | 4.27% | Communication Services | 11,877 | 2 days ago |
Broadcast stocks are experiencing a renaissance, driven by improving economic conditions and anticipated high consumer spending. If you’ve been on the lookout for promising investment opportunities, it’s time to consider Sinclair Broadcasting (SBGI), Belo Corp. (BLC), and Nexstar Broadcasting Group (NXST). According to Louis Navellier’s “Portfolio Grader,” these stocks boast strong fundamentals and stand to benefit from increasing advertiser dollars. Let’s dive deeper into why these stocks are creating such a buzz and why they might be the perfect fit for your portfolio.
The Reinvigorated Appeal of Broadcast Stocks
The resurgence in broadcast stocks is fueled by a combination of improving economic indicators and a significant uptick in ad spending. Experts highlight events like the mid-term elections, the FIFA World Cup, and the Winter Olympics as key drivers that are likely to boost revenues for these broadcasters. This optimistic outlook is perfect for savvy investors looking to stay ahead of market trends and capitalize on stocks poised for substantial growth.
Consumer confidence numbers have been a pleasant surprise for Wall Street. With a brighter consumer outlook, the economy is showing steady improvement, suggesting that a stronger recovery could be taking hold in the latter half of 2013 and early 2014. This brightening outlook is starting to manifest in the broadcast industry, where rapidly improving fundamentals are evident as advertisers ramp up spending in anticipation of stronger consumer spending later this year.
The core excitement here lies in the robustness of these stocks, their poised positions to benefit from an upswing in the economy, and their potential for delivering impressive returns. As the US economy gears up, advertiser spending is expected to skyrocket, positioning broadcasters for substantial growth and profitability.
Editor's Note: Analysis and insight for this article were originally sourced from our friends at InvestorPlace
Sinclair Broadcasting Group (SBGI): Aggressive Expansion Equals Massive Gains
Sinclair Broadcasting Group has been on an expansion spree. The company recently acquired Fisher Communications, adding 20 television stations and three radio outlets in the Pacific Northwest to its portfolio. This acquisition has expanded Sinclair’s reach to 65 television stations in 39 markets across the United States, bolstering both its top and bottom-line growth.
Year-to-date, the stock has doubled, a testament to its aggressive growth strategy paying off. With an ‘A’ (strong buy) rating from Portfolio Grader, Sinclair stands out due to its strong fundamentals and strategic acquisitions. This aggressive expansion before the full economic recovery is driving significant top and bottom-line growth, making Sinclair Broadcasting a top pick as market dynamics continue to improve.
Analyst Ratings for SBGI
| Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
|---|---|---|---|---|
| Neutral | $15.50 | $14.03 | 16.28% | 14 |
Summary of Analyst Outlook:
- Consensus Rating: Neutral, suggesting that the majority of analysts do not strongly recommend buying or selling the stock.
- Average Price Target: An average price target of $15.50 indicates a potential upside of 16.28% from the current price.
- Current Price: The stock is currently priced at $14.03.
- Analyst Insights: There is a range of opinions from sell to buy, with many analysts holding a neutral position, reflecting a mixed outlook.
Belo Corp. (BLC): Outpacing Earnings Estimates Every Quarter
Belo Corp. owns 20 TV stations and websites across 15 markets, along with three local channels and two regional news networks. Combined, these outlets cover almost 15% of the national TV market. Belo’s diverse reach and consistent performance make it a strong contender in the broadcast sector.
The company has outperformed Wall Street earnings estimates for four consecutive quarters, with rising estimates suggesting sustained performance. This consistent outperformance, along with improving projections, has earned Belo a ‘strong buy’ rating from Portfolio Grader, signaling its potential for robust returns as ad spending increases.
Analyst Ratings for BLC
| Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
|---|---|---|---|---|
| Sell | $20.83 | $19.58 | 5.25% | 7 |
Summary of Analyst Outlook:
- Consensus Rating: Sell, indicating that the majority of analysts recommend selling the stock.
- Average Price Target: An average price target of $20.83 suggests a potential gain of 5.25% from the current price.
- Current Price: The stock is currently priced at $19.58.
- Analyst Insights: Analysts are generally bearish on BLC. The consensus view is supported by metrics such as a decrease in net income and negative technical analysis signals.
Nexstar Broadcasting Group (NXST): Poised for Major Gains
Nexstar Broadcasting Group owns and services 72 stations in 18 markets, covering over 12% of the television broadcast audience. The company’s recent announcement about acquiring an additional 19 stations only strengthens its market presence and positions it for greater growth.
Nexstar isn’t just expanding in numbers. It maximizes its market position by providing news and sales support services to second stations within its markets, creating additional revenue streams. In over 60% of its markets, Nexstar provides these services to a second station, allowing it to generate extra income from one marketplace. The company has reported record results recently, consistently maintaining a ‘strong buy’ status on Portfolio Grader since the beginning of 2013. This positions Nexstar as a stock worth serious consideration.
Analyst Ratings for NXST
| Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
|---|---|---|---|---|
| Strong Buy | $201.90 | $166.90 | 21.85% | 10 |
| Strong Buy | $210.60 | $166.01 | 26.86% | 5 |
Summary of Analyst Outlook:
- Consensus Rating: Strong Buy, indicating strong positive sentiment from analysts.
- Average Price Targets: Price targets vary from $201.90 to $210.60, suggesting a potential increase of 21.85% to 26.86% from current prices.
- Current Prices: The stock is currently trading between $166.01 and $166.90.
- Analyst Insights: Analysts are optimistic about Nexstar Media Group’s future performance, reflecting expected substantial growth.
The Broader Economic Context
Increased advertiser spending within the broadcast sector directly correlates with improving economic indicators. As businesses feel more confident about economic stability and growth, they are likely to allocate more substantial budgets towards advertising, thereby benefiting firms like Sinclair, Belo, and Nexstar. These stocks, through strategic expansions and solid financial performances, are positioned to seize the opportunities presented by a rejuvenated economy.
Understanding these dynamics can give investors a strategic edge, helping them identify and tap into potentially high-yield opportunities. By investing in these broadcast stocks, you are essentially banking on the continued recovery and growth of the US economy, coupled with increased ad revenues spurred by major upcoming events.
This article underscores the appeal of Sinclair Broadcasting, Belo Corp., and Nexstar Broadcasting Group, offering an in-depth look into why these stocks are currently sending out a strong buy signal. With their strategic moves and robust fundamentals, these companies present substantial and timely investment opportunities that you should not overlook.
