雅虎香港財經 14 Best Broadcasting Stocks To Buy
In this article, we discuss 14 best broadcasting stocks to buy. If you want to see more stocks in this selection, check out 5 Best Broadcasting Stocks To Buy.
According to The Business Research Company, the projected size of the global TV and radio broadcasting market was set to increase from $374.55 billion in 2021 to $401.25 billion in 2022, representing a compound annual growth rate (CAGR) of 7.1%. This growth can be attributed to companies reorganizing their operations and recovering from the impact of the COVID-19 pandemic. The pandemic had necessitated measures such as social distancing, remote work, and the temporary closure of commercial activities, resulting in operational challenges for the industry. The market is further expected to expand to $504.00 billion by 2026, growing at a CAGR of 5.9% during the forecast period.
As per a Reuters Institute report dated January 10, broadcasters are encountering growing challenges as audiences for linear news bulletins and opinion programming decline rapidly across all age groups. This situation is exacerbated by the fact that most commercial TV and radio providers heavily rely on advertising or carriage fees for revenue, with limited direct income from viewers or listeners. Additionally, the decision by Netflix, Inc. (NASDAQ:NFLX) to introduce advertisements adds to the pressure on broadcasters. Moreover, public broadcasters are experiencing funding cuts and facing heightened criticism from politicians and competitors in the publishing industry. The failure of CNN+ in the previous year indicated a limited outlook for independent linear news subscriptions. However, Reuters anticipates an increase in efforts to combine on-demand and live news within streaming services. Public broadcasters like the BBC have begun to suggest the possibility of discontinuing TV and radio transmissions over the next decade as consumers increasingly shift towards using apps and websites for their media consumption.
Media companies, regardless of their size, are starting to recognize the extensive possibilities offered by cloud technology in the realms of broadcast and streaming, according to BroadcastPRO ME. While cloud and hybrid environments have been a focus for forward-thinking media technology providers for a while, they are now gradually entering the mainstream for video production and distribution in 2023. The cloud has become an essential component of product strategies and a means to unlock new revenue streams in the media industry. Venugopal Iyengar, Deputy COO Digital at Planetcast International, told BroadcastPRO ME on January 18:
“Taking learnings from the past couple of years and looking to 2023, broadcasters of all shapes and sizes have become acutely aware of the need for reliable disaster recovery systems. Cloud-based DR models are democratizing access to playout disaster recovery for the global media market. Facility- and location-agnostic virtualized disaster recovery offers a more flexible and commercially viable alternative to traditional monolithic DR models based on a full active/active on-premise set-up.”
Some of the best broadcasting stocks to invest in include Warner Bros. Discovery, Inc. (NASDAQ:WBD), Comcast Corporation (NASDAQ:CMCSA), and Paramount Global (NASDAQ:PARA).
Our Methodology
We scanned Insider Monkey’s database of 943 hedge funds and picked the top 14 companies that operate in the broadcasting sector with the highest number of hedge fund investors. These are the best broadcasting stocks to buy according to hedge funds.
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Best Broadcasting Stocks to Buy
14. Cumulus Media Inc. (NASDAQ:CMLS)
Number of Hedge Fund Holders: 13
Cumulus Media Inc. (NASDAQ:CMLS) is a media company that primarily focuses on audio content. It possesses and manages a range of radio stations across the United States. The company's content offerings encompass a diverse array of subjects such as sports, news, talk shows, and entertainment. These programs are sourced from a variety of well-known brands, including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and various other partners. It is one of the best broadcasting stocks to invest in.
On April 27, Cumulus Media Inc. (NASDAQ:CMLS) reported its Q1 2023 results. The company posted a Q1 GAAP EPS of -$1.17 and a revenue of $205.7 million, outperforming Wall Street estimates by $0.01 and $2.77 million, respectively. The recorded amount of debt on March 31, 2023, was $713.1 million, while the net debt stood at $594.2 million. These figures represent the lowest levels observed in over ten years.
After reviewing the Q1 report, B. Riley revised Cumulus Media Inc. (NASDAQ:CMLS)’s price target to $10 from $16. However, the firm maintained a Buy rating on the shares on April 28. B. Riley stated that the decline in national radio ad expenditure has intensified compared to the previous update in late February.
According to Insider Monkey’s fourth quarter database, 13 hedge funds were bullish on Cumulus Media Inc. (NASDAQ:CMLS), compared to 14 funds in the prior quarter. Beach Point Capital Management is the largest stakeholder of the company, with 596,769 shares worth $3.70 million.
In addition to Warner Bros. Discovery, Inc. (NASDAQ:WBD), Comcast Corporation (NASDAQ:CMCSA), and Paramount Global (NASDAQ:PARA), Cumulus Media Inc. (NASDAQ:CMLS) is one of the best broadcasting stocks to invest in.
13. Sinclair Broadcast Group, Inc. (NASDAQ:SBGI)
Number of Hedge Fund Holders: 18
Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) is a media company in the United States that operates local television stations. They broadcast a variety of programming, including network shows, local news, sports events, syndicated entertainment, and internally produced content. Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) also owns digital media products and provides programming, operating services, sales services, and other non-programming services through its broadcasting stations in different markets. It is one of the best broadcasting stocks to watch.
On April 18, Benjamin Soff, an analyst at Deutsche Bank, increased the price target for Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) from $21 to $22 while maintaining a Hold rating on the shares. The analyst believes that the company is making positive progress and heading in the right direction.
According to Insider Monkey’s fourth quarter database, 18 hedge funds were long Sinclair Broadcast Group, Inc. (NASDAQ:SBGI), compared to 21 funds in the prior quarter. Mario Gabelli’s GAMCO Investors is the largest position holder in the company.
12. AMC Networks Inc. (NASDAQ:AMCX)
Number of Hedge Fund Holders: 20
AMC Networks Inc. (NASDAQ:AMCX) is an American entertainment company that operates several television channels and streaming platforms. AMC Networks Inc. (NASDAQ:AMCX) owns and operates several popular television channels, including AMC, BBC America, IFC, SundanceTV, and WE tv. These channels offer a variety of content, including news, movies, TV shows, and original series. It is one of the best broadcasting stocks to invest in. On February 17, the company reported a Q4 non-GAAP EPS of $2.52 and a revenue of $964.52 million, outperforming Wall Street estimates by $1.25 and $27.45 million, respectively.
On February 21, Morgan Stanley analyst Thomas Yeh raised the firm's price target on AMC Networks Inc. (NASDAQ:AMCX) to $24 from $19 and reiterated an Equal Weight rating on the shares. AMC Networks Inc. (NASDAQ:AMCX)'s decision to reduce its spending on cash content to approximately $1-1.1 billion in FY23 and beyond has positively impacted the firm's projections for free cash flow. However, there is a potential risk of lower investments in content leading to increased challenges in generating revenue, according to the analyst's note to investors.
According to Insider Monkey's fourth quarter database, 20 hedge funds were bullish on AMC Networks Inc. (NASDAQ:AMCX), compared to 16 funds in the prior quarter. Cliff Asness' AQR Capital Management is the biggest stakeholder of the company.
Here is what ClearBridge Investments has to say about AMC Networks Inc. (NASDAQ:AMCX) in its Q1 2021 investor letter:
“Media has been another bright spot for the Strategy, boosted by the return of live events and subsequent rebound in advertising as well as good initial traction for several of our companies new streaming services. AMC Networks has seen strong initial subscriber growth to their over-the-top services.”
11. Gray Television, Inc. (NYSE:GTN)
Number of Hedge Fund Holders: 23
Gray Television, Inc. (NYSE:GTN) is a television broadcasting company that possesses and manages television stations and digital assets within the United States. The company broadcasts additional digital channels associated with major networks like ABC, CBS, NBC, and FOX, as well as various other networks and program services such as CW Plus Network, MY Network, the MeTV Network, Circle, Antenna TV, Telemundo, and Cozi. Additionally, Gray Television, Inc. (NYSE:GTN) operates local news and weather channels in different markets. It is one of the premier broadcasting stocks to monitor.
On November 10, Barrington analyst James Goss maintained an Outperform rating on Gray Television, Inc. (NYSE:GTN) but lowered the firm's price target on the shares to $15 from $25.
According to Insider Monkey’s fourth quarter database, 23 hedge funds were bullish on Gray Television, Inc. (NYSE:GTN), compared to 29 funds in the prior quarter. Anand Desai’s Darsana Capital Partners is the largest stakeholder of the company, with 4.6 million shares worth $51.3 million.
10. Sirius XM Holdings Inc. (NASDAQ:SIRI)
Number of Hedge Fund Holders: 26
Sirius XM Holdings Inc. (NASDAQ:SIRI) is an American broadcasting company that specializes in satellite radio services. SiriusXM offers a wide range of commercial-free music, sports, news, talk, and entertainment channels via satellite and online streaming. It provides subscription-based services to millions of subscribers in the United States and Canada. It is one of the best broadcasting stocks to monitor. On April 19, Sirius XM Holdings Inc. (NASDAQ:SIRI) declared a $0.0242 per share quarterly dividend, in line with previous. The dividend is payable on May 24, to shareholders of record on May 5.
On April 27, Pivotal Research maintained a Hold rating on Sirius XM Holdings Inc. (NASDAQ:SIRI) but reduced its price target on the shares from $5 to $4. According to the firm's research note to investors, Sirius XM Holdings Inc. (NASDAQ:SIRI)'s Q1 results were described as "mixed," with self-pay subscriber losses worse than anticipated and moderately higher churn than forecasted. However, Pivotal Research believes that the outlook for shares is more favorable in 2024. This is due to Sirius XM's expectation of overcoming one-time expenses in 2023, benefiting from digital investments, and the normalization of car production, which will likely have a positive impact on the company.
According to Insider Monkey's fourth quarter database, 26 hedge funds were long Sirius XM Holdings Inc. (NASDAQ:SIRI), compared to 24 funds in the earlier quarter. Stuart J. Zimmer's Zimmer Partners is a prominent stakeholder of the company.
9. iHeartMedia, Inc. (NASDAQ:IHRT)
Number of Hedge Fund Holders: 27
iHeartMedia, Inc. (NASDAQ:IHRT) is a media and entertainment company that operates in three main segments – Multiplatform Group, Digital Audio Group, and Audio & Media Services Group. The Multiplatform Group segment focuses on broadcast radio stations, sponsorship opportunities, and live/virtual events. It also operates Premiere Networks, a national radio network that produces and distributes syndicated radio programs and services to affiliated radio stations. Additionally, this segment provides real-time traffic updates, weather information, sports content, and news updates. iHeartMedia, Inc. (NASDAQ:IHRT)’s revenue of $811.2 million exceeded Wall Street estimates by $15.77 million.
On March 1, B. Riley analyst Daniel Day reiterated a Buy rating on iHeartMedia, Inc. (NASDAQ:IHRT) but lowered the firm's price target on the shares to $16 from $22 following the Q4 results. The analyst suggested that the Q1 revenue guidance indicates a further decline in national advertising expenditure, building upon the initial decrease observed last summer. This is attributed to advertisers exercising caution with their budgets early in the year. Considering the challenging advertising environment and concerns regarding long-term challenges in broadcast radio, the analyst advised investors to exercise patience with iHeartMedia, Inc. (NASDAQ:IHRT) as they enter 2023.
According to Insider Monkey’s fourth quarter database, 27 hedge funds were long iHeartMedia, Inc. (NASDAQ:IHRT), compared to 28 funds in the prior quarter. Silver Point Capital is the largest stakeholder of the company, with 5.5 million shares worth $34 million.
Palm Harbour Capital made the following comment about IHeartMedia, Inc. (NASDAQ:IHRT) in its Q4 2022 investor letter:
“The top detractor was IHeartMedia, Inc. (NASDAQ:IHRT) (-24.3% -45 bps), the American radio and podcasting company. The company is the highest levered business in our portfolio and has suffered on fears of an advertisement slowdown. Company insiders continue to buy stock in the market and the company as of yet, has not seen the drastic slow-down the market is predicting. With long debt maturities and a growing podcasting business, as well as likely interest from a major shareholder, we think the company can survive all but the harshest of recessions. If, on the other hand, there is even a couple years of moderate growth, the company could be worth many multiples of the current share price.”
8. Nexstar Media Group, Inc. (NASDAQ:NXST)
Number of Hedge Fund Holders: 31
Nexstar Media Group, Inc. (NASDAQ:NXST) is a company that specializes in acquiring, developing, and operating television stations, interactive community websites, and digital media services in the United States. The company is primarily involved in television broadcasting and digital media. On April 28, Nexstar Media Group, Inc. (NASDAQ:NXST) declared a $1.35 per share quarterly dividend, in line with previous. The dividend is payable on May 26, to shareholders of record on May 12. It is one of the best broadcasting stocks to invest in.
As per Wells Fargo, Nexstar Media Group, Inc. (NASDAQ:NXST) has provided guidance indicating that they expect a high-single to low-double digit percentage growth in gross retransmission for 2023. Wells Fargo believes that the ongoing debates regarding retransmission fees are generally well understood, although they may not be completely resolved yet. While the intensity of the debates is decreasing, Wells Fargo suggested that there are still potential risks associated with the guidance provided. Therefore, the firm chooses to maintain a neutral stance with a price target of $175 and an Equal Weight rating on Nexstar Media Group, Inc. (NASDAQ:NXST) shares on March 21.
According to Insider Monkey’s fourth quarter database, 31 hedge funds were bullish on Nexstar Media Group, Inc. (NASDAQ:NXST), compared to 32 funds in the prior quarter. Amy Minella’s Cardinal Capital is the largest stakeholder of the company, with 943,570 shares worth $165 million.
Like Warner Bros. Discovery, Inc. (NASDAQ:WBD), Comcast Corporation (NASDAQ:CMCSA), and Paramount Global (NASDAQ:PARA), Nexstar Media Group, Inc. (NASDAQ:NXST) is one of the top broadcasting stocks to watch.
Here is what Richie Capital Group has to say about Nexstar Media Group, Inc. (NASDAQ:NXST) in its Q1 2022 investor letter:
“Nexstar Media Group (NXST up 24.8%) – The television broadcasting and digital media company surged during the quarter after presenting at an investor conference where management pointed to a strong 2022 for both political advertising and retransmission. They have exposure to more than 80% of markets with competitive mid-term political races. NXST is developing new ad categories such as sports betting and they are focused on expanding digital ad revenue and providing digital solutions to local advertisers. Auto advertising will return in the fall as auto dealerships re-enter the market to sell their replenished inventory.”
7. Fox Corporation (NASDAQ:FOX)
Number of Hedge Fund Holders: 34
Fox Corporation (NASDAQ:FOX) functions as a news, sports, and entertainment company. Its operations are divided into three segments – Cable Network Programming, Television, and Other, Corporate and Eliminations. On April 19, Rosenblatt maintained a Neutral rating on Fox Corporation (NASDAQ:FOX) and decreased its price target on the shares from $35 to $33. The revised target considers the analyst's estimation of a $1 per share impact from the Dominion settlement after taxes. The firm anticipates a similar impact in the future due to a settlement with Smartmatic USA next year. It assumes that the increasing number of lawsuits will lead to improved legal measures to prevent similar incidents from occurring again.
According to Insider Monkey’s fourth quarter database, 34 hedge funds were bullish on Fox Corporation (NASDAQ:FOX), compared to 32 funds in the prior quarter. Donald Yacktman’s Yacktman Asset Management is the biggest stakeholder of the company, with 8.6 million shares worth $247 million.
6. DISH Network Corporation (NASDAQ:DISH)
Number of Hedge Fund Holders: 37
DISH Network Corporation (NASDAQ:DISH) is an American company that specializes in providing pay-TV services within the United States. The company operates through two main segments - Pay-TV and Wireless. Under the DISH TV brand, it offers video services to customers. These services encompass programming packages that include a wide range of content from national broadcast networks, local broadcast networks, national and regional cable networks, regional and specialty sports channels, premium movie channels, and packages with international programming.
On April 12, Barclays reduced the price target for DISH Network Corporation (NASDAQ:DISH) to $10 from $14 while maintaining an Underweight rating on the shares. The analyst expressed concern that margin-related issues may arise in the cable and satellite industry following worries about unit growth.
According to Insider Monkey's fourth quarter database, 37 hedge funds were bullish on DISH Network Corporation (NASDAQ:DISH), compared to 40 funds in the prior quarter. Boykin Curry's Eagle Capital Management held the largest stake in the company.
Here is what ClearBridge Investments has to say about DISH Network Corporation (NASDAQ:DISH) in its Q2 2021 investor letter:
“Portfolio holdings in the communication services and financial sectors also made strong contributions. Dish Network continues to make progress on the buildout of its greenfield 5G network, with Las Vegas slated to become the first market launched later this year. The company gained credibility, and its stock reacted favorably, after it announced a partnership with Amazon to deploy a 5G cloud-native network using AWS’s cloud infrastructure. While the stock has been volatile in recent quarters, we continue to feel confident in Dish’s long-term prospects, which include competing as a fourth U.S. wireless carrier. Charter Communications has been executing well and benefiting from the growth in residential broadband, which has been accelerated by COVID-19 and should see further support from the Biden Administration’s infrastructure bill, which earmarks $65 billion for broadband buildout. In addition, we expect the company to continue to grow its wireless business, leveraging its mobile virtual network operator (MVNO) relationship with Verizon. The company continues to generate strong and growing free cash flow and deploys it toward consistent and material share buybacks.”
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Disclosure: None. 14 Best Broadcasting Stocks To Buy is originally published on Insider Monkey.
