Nexstar Broadcasting Group advances while market declines: Some information for investors

The most recent trading session ended with Nexstar Broadcasting Group (NXST) standing at $158.51, reflecting a +1.14% shift from the previouse trading day’s closing. The stock’s performance was ahead of the S&P 500’s daily loss of 0.34%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, lost 0.56%.

Prior to today’s trading, shares of the television broadcaster had gained 10.54% over the past month. This has outpaced the Consumer Discretionary sector’s gain of 2.07% and the S&P 500’s gain of 2.56% in that time.

Market participants will be closely following the financial results of Nexstar Broadcasting Group in its upcoming release. The company is predicted to post an EPS of $4.42, indicating a 45.02% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, down 11.03% from the year-ago period.

Investors should also take note of any recent adjustments to analyst estimates for Nexstar Broadcasting Group. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there’s been no change in the Zacks Consensus EPS estimate. Nexstar Broadcasting Group currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Nexstar Broadcasting Group is currently exchanging hands at a Forward P/E ratio of 5.24. This represents a discount compared to its industry’s average Forward P/E of 9.

One should further note that NXST currently holds a PEG ratio of 0.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Broadcast Radio and Television was holding an average PEG ratio of 0.67 at yesterday’s closing price.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 177, placing it within the bottom 30% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Zacks Equity Research