10 Best Broadcasting Stocks to Buy

4. E.W. Scripps Company (NASDAQ:SSP)

Market Cap: $177.12 million

Number of Hedge Fund Holders: 20

E.W. Scripps Company (NASDAQ:SSP) is a former media conglomerate that started as a chain of daily newspapers and now specializes in many services, from local television broadcasting to digital media and national networks.

Like most broadcasting companies, E.W. Scripps Company (NASDAQ:SSP) believes its 2024 Local Media election-year political advertising revenue will reach record levels, even with a low-end range of $270-$290 million.

Its core revenue was impacted by political advertising, a tougher NBA comparison, and a transition away from a national rep firm together. CTV revenue increased 11% but was impacted by market dynamics and discounted rates from Amazon and Netflix, so the overall year-over-year revenue fell by 1.58%.

So, E.W. Scripps Company (NASDAQ:SSP) recorded revenue that was less than street estimates for Q2, $573.63 million. The loss per share for this period was $0.15. However, Q3 revenue is expected to be up by 20%. The company has since lowered its expectations for connected TV revenue.

Viewership of the WNBA has skyrocketed and the revenue is up 85% from the 2023 season. It also recently signed the newest Stanley Cup champions, the Florida Panthers, to a production, sales, and distribution rights agreement. The Panthers are the third National Hockey League team to partner with Scripps Sports for broadcast rights.

The company’s Bounce television network, whose programming is created for Black audiences, has had a compound annual growth rate of 14% since 2017. The company is working to reduce expenses and improve profitability. For instance, capital expenditures are expected to be lower than previous guidance. With a focus on debt reduction, it is on track for future growth, making it one of the best broadcasting stocks to buy.

20 hedge fund holders were long SSP, and D E Shaw has the largest stake with a value of $10,388,458, as of June 30.

Cove Street Capital Small Cap Value Fund stated the following regarding The E.W. Scripps Company (NASDAQ:SSP) in its Q2 2024 investor letter:

“The E.W. Scripps Company (NASDAQ:SSP) is too stupid cheap and too levered. We think both will be relieved to a great degree by an upcoming sale of their Bounce network, which could be sold for more than their current market cap. We also note Berkshire Hathaway and the Scripps family are key variables here being underestimated in the public opinion of balance sheet resolution for the company. A complete miss in national advertising trends in the past year has developed into a hairier balance sheet to which we generally feel comfortable. We again have been slowly in and out of the equity several times over the past seven years with solid results. This time around has been a little stickier.”