Nexstar Broadcasting Group (NXST) closed the most recent trading day at $181.04, moving +0.2% from the previous trading session. This move lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 5.28%.
Coming into today, shares of the television broadcaster had gained 9.84% in the past month. In that same time, the Consumer Discretionary sector gained 3.43%, while the S&P 500 gained 4.86%.
Nexstar Broadcasting Group will be looking to display strength as it nears its next earnings release, which is expected to be August 8, 2023. The company is expected to report EPS of $2.88, down 48.2% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.25 billion, up 0.29% from the year-ago period.
NXST's full-year Zacks Consensus Estimates are calling for earnings of $13.15 per share and revenue of $5.11 billion. These results would represent year-over-year changes of -51.12% and -2.02%, respectively.
Any recent changes to analyst estimates for Nexstar Broadcasting Group should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Nexstar Broadcasting Group is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Nexstar Broadcasting Group is currently trading at a Forward P/E ratio of 13.74. Its industry sports an average Forward P/E of 13.92, so we one might conclude that Nexstar Broadcasting Group is trading at a discount comparatively.
Meanwhile, NXST's PEG ratio is currently 1.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NXST in the coming trading sessions, be sure to utilize Zacks.com.
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