Nexstar Broadcasting Group (NXST) Stock Declines While Market Improves: Some Information for Investors
The latest trading session saw Nexstar Broadcasting Group (NXST) ending at $170.75, denoting a -0.89% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.57%. Elsewhere, the Dow saw an upswing of 0.46%, while the tech-heavy Nasdaq appreciated by 0.75%.
Prior to today's trading, shares of the television broadcaster had gained 19.7% over the past month. This has outpaced the Consumer Discretionary sector's gain of 1.02% and the S&P 500's gain of 3.4% in that time.
Investors will be eagerly watching for the performance of Nexstar Broadcasting Group in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 28, 2024. The company is expected to report EPS of $4.42, down 45.02% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.32 billion, indicating a 11.03% decrease compared to the same quarter of the previous year.
Investors should also note any recent changes to analyst estimates for Nexstar Broadcasting Group. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Nexstar Broadcasting Group is currently a Zacks Rank #4 (Sell).
In the context of valuation, Nexstar Broadcasting Group is at present trading with a Forward P/E ratio of 5.76. This signifies a discount in comparison to the average Forward P/E of 8.22 for its industry.
Meanwhile, NXST's PEG ratio is currently 0.63. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 0.7 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 210, this industry ranks in the bottom 17% of all industries, numbering over 250.
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.
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Nexstar Media Group, Inc (NXST) : Free Stock Analysis Report
