Momentum Stock Watch: Nexstar Media Group, Inc. (NXST)

Company Profile:

Nexstar Media Group, Inc. operates as a television broadcasting and digital media company in the United States. The company focuses on the acquisition, development, and operation of television stations and interactive community Websites in small and medium-sized markets. It offers free over-the-air programming to television viewing audiences. As of December 31, 2018, the company also provides sales, programming, and other services through various local service agreements to 38 power television stations owned and/or operated by independent third parties; owned, operated, programmed, or provided sales and other services to 174 television stations in 100 markets and reaches 42.7 million television households. It affiliates of ABC, NBC, FOX, CBS, The CW, MNTV and other broadcast television networks. The company was formerly known as Nexstar Broadcasting Group, Inc. and changed its name to Nexstar Media Group, Inc. in January 2017. Nexstar Media Group, Inc. was founded in 1996 and is headquartered in Irving, Texas.

Recent News:

In trading on Friday, shares of Nexstar Media Group Inc crossed above their 200 day moving average of $96.85, changing hands as high as $98.95 per share.

For the second quarter of 2019, the company reported earnings of $1.42 per share, compared with earnings of $1.86 per share a year ago. Revenues was $649.01 million, compared with $660.32 million a year ago.

Nexstar Media has a trailing twelve months PE ratio of 12.57, compared with the PE ratio of 18.41 for the S&P 500, it is relatively undervalued.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

NXST’s strengths can be seen in its strong growth and robust profitability compared with its peers. Its revenue has increased over recently several years. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator. The RSI stands at 54.02 with positive bias. We rate Nexstar Media Group, Inc. (NXST) a STRONG BUY.