5 Best Broadcasting Stocks To Buy

In this article, we discuss 5 best broadcasting stocks to buy. If you want to see more stocks in this selection, check out 14 Best Broadcasting Stocks To Buy. 

5. Paramount Global (NASDAQ:PARA)

Number of Hedge Fund Holders: 38

Paramount Global (NASDAQ:PARA) is a global media and entertainment company that operates through three segments – TV Media, Direct-to-Consumer, and Filmed Entertainment. The TV Media segment manages various domestic and international broadcast networks, including CBS Television Network, Network 10, Channel 5, Telefe, and Chilevisión. Additionally, it oversees cable networks such as Paramount Media Networks, Nickelodeon, BET Media Group, and CBS Sports. It is one of the best broadcasting stocks to consider. 

On April 14, Wells Fargo analyst Steven Cahall revised down the firm’s estimate for Paramount Global (NASDAQ:PARA)’s advertising revenue in the first quarter by 1% to $2.6 billion, representing an 8% decrease compared to the previous year. The analyst noted that the firm’s estimate is now 3% lower than the consensus forecast for overall advertising, including 2% lower at TV Media and 5% lower at Direct-to-Consumer (DTC). The analyst also highlighted reports suggesting that Paramount Global (NASDAQ:PARA) is considering selling majority stakes in Noggin and BET Group, along with the ongoing sale of Simon & Schuster, as an indication of financial strain on the company’s balance sheet. As a result, Wells Fargo maintained an Underweight rating on Paramount shares, with a price target of $11.

According to Insider Monkey’s fourth quarter database, 38 hedge funds were bullish on Paramount Global (NASDAQ:PARA), compared to 40 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 93.6 million shares worth $1.5 billion. 

4. The Liberty SiriusXM Group (NASDAQ:LSXMA)

Number of Hedge Fund Holders: 46

The Liberty SiriusXM Group (NASDAQ:LSXMA) is one of the best broadcasting stocks to invest in. The company operates in the entertainment industry in the United States and Canada. The Liberty SiriusXM Group (NASDAQ:LSXMA) offers a range of services including music, sports, entertainment, comedy, talk, news, traffic, weather channels, podcasts, and infotainment. These services are delivered through their own satellite radio systems and can also be streamed through mobile and home device applications, as well as other consumer electronic equipment. It is one of the best broadcasting stocks to invest in. 

On April 23, Seaport Research analyst David Joyce started coverage of The Liberty SiriusXM Group (NASDAQ:LSXMA) with a Neutral rating. The firm has initiated coverage on ten companies in the Live Sports & Entertainment segment, generally holding a positive view. This is due to the demonstrated operational resilience of these companies during economic downturns, the long-term value of professional sports teams, and the potential for certain companies to experience significant growth once catalysts are realized, even though this may take some time, the analyst wrote in a research note. 

According to Insider Monkey’s fourth quarter database, 46 hedge funds were bullish on The Liberty SiriusXM Group (NASDAQ:LSXMA), compared to 52 funds in the prior quarter. 

Sequoia Fund made the following comment about The Liberty SiriusXM Group (NASDAQ:LSXMA) in its Q4 2022 investor letter:

“Shares of The Liberty SiriusXM Group (NASDAQ:LSXMA), the holding company through which we own the Formula One motorsport league, declined this year, though by significantly less than the S&P 500 Index. Business performance was superb. For full-year 2022, Liberty Media’s revenues are expected to be up almost 20%, with profits up even more. This robust growth is the result of a continued recovery from pandemic-related disruptions, but even after adjusting for this recovery the business grew nicely. Versus 2019, Liberty Media’s revenues and per share earnings power are expected to have compounded at annual rates of approximately 7% and 23%, respectively.

Formula One has made very significant progress since Sequoia first acquired shares via a private placement in 2017. Formula One has for decades been the pinnacle of global motorsport, but under previous management it suffered from internecine fissures and short-sighted strategy that were negatively impacting the sport and the business. 2022 saw the full implementation of a new Concorde Agreement signed in 2020. The Concorde Agreement lays out the key economic, technical and sporting terms on which the teams participate, and this most recent one realigns the teams and the league in a manner that should pay off for all parties involved. The new Concorde Agreement has already had some positive impact on the sport and the business, and we believe the majority of the benefits have yet to be realized.

Already, the sport is healthier than it has been for a long time. TV viewership was up globally again this year, which helped Formula One secure a round of richer broadcast deals in Europe as well as in the US, where the new deal with ESPN/ABC is rumored to be almost 10x more remunerative than the last one. In 2022, US TV viewership was up almost 30% over last year, building on the momentum of previous years and driven by the latest season of Netflix’s Drive to Survive series and the calendar’s new Miami race. Liberty Media plans to add a third US race in 2023, in Las Vegas. Instead of relying on a promoter as it typically does, Liberty Media will run the Las Vegas race itself, which will require significant investment but should generate an attractive return…” (Please click here to read the full text)

3. TEGNA Inc. (NYSE:TGNA)

Number of Hedge Fund Holders: 50

TEGNA Inc. (NYSE:TGNA) is a media company based in the United States. Its operations revolve around television stations that provide television programming and digital content. The company delivers news content to consumers through multiple platforms, including online, mobile devices, connected televisions, and social media. TEGNA Inc. (NYSE:TGNA) is one of the best broadcasting stocks to buy. 

On April 12, Benchmark maintained a Buy rating on TEGNA Inc. (NYSE:TGNA) but lowered the firm’s price target on the shares to $22 from $24. The firm acknowledged that, from a broad perspective, the shares appear undervalued based on blended EBITDA estimates for 2022 and 2023. Furthermore, they consider the shares even more attractively priced based on estimates for 2023 and 2024. However, the analyst noted uncertainty regarding a potential retest of the stock’s recent lows in the short term. 

According to Insider Monkey’s fourth quarter database, 50 hedge funds were bullish on TEGNA Inc. (NYSE:TGNA), compared to 45 funds in the prior quarter. Carl Tiedemann and Michael Tiedemann’s TIG Advisors is the largest stakeholder of the company, with 6.4 million shares worth $137.5 million. 

Here is what Hourglass Capital has to say about TEGNA Inc. (NYSE:TGNA) in its Q1 2022 investor letter:

“At the portfolio level, clients fully invested at the start of the year saw an average return of 5.4% in the first quarter after all associated fees. I made three sales during the quarter, all for very different reasons. First, I sold the entirety of our position in TEGNA, Inc., a broadcasting and digital media business, after the company received a leveraged buyout offer by two joint-venture private equity investors, Standard General and Apollo.”

2. Warner Bros. Discovery, Inc. (NASDAQ:WBD)

Number of Hedge Fund Holders: 60

Warner Bros. Discovery, Inc. (NASDAQ:WBD) operates as a media and entertainment company worldwide. Warner Bros. Discovery, Inc. (NASDAQ:WBD) has a strong presence in traditional television broadcasting. It operates a number of television networks, including popular channels such as CNN, TNT, TBS, Cartoon Network, and HBO. These networks offer a diverse array of programming, including news, sports, scripted and reality shows, animated content, and premium content. It is one of the best broadcasting stocks to invest in.

On April 14, Wells Fargo reiterated an Overweight rating and a $20 price target on Warner Bros. Discovery, Inc. (NASDAQ:WBD) shares ahead of the company’s upcoming Q1 report.

According to Insider Monkey’s fourth quarter database, 60 hedge funds were bullish on Warner Bros. Discovery, Inc. (NASDAQ:WBD), compared to 61 funds in the prior quarter.

Longleaf Partners Fund made the following comment about Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its Q1 2023 investor letter:

“Warner Bros. Discovery, Inc. (NASDAQ:WBD) – Media conglomerate Warner Bros Discovery (WBD) was the top contributor in the quarter. WBD was a top detractor last year in the face of concerns over management’s ability to effectively merge two businesses with different cultures, high leverage and exposure to cord cutting. In 2023, a solid plan is emerging for the integration of the businesses. This management team has a strong track record of integrating assets and growing free cash flow (FCF) per share, which is beginning to happen at WBD. Management has guided that the company will likely be below 4 times net debt to EBITDA by the end of 2023 and to 3x or less by the end of 2024, taking WBD out of the penalty box. We have seen this management team successfully execute this playbook before when Discovery bought former Southeastern holding Scripps in 2017. We are also finally beginning to see industry price rationality across the streaming world.”

1. Comcast Corporation (NASDAQ:CMCSA)

Number of Hedge Fund Holders: 72

Comcast Corporation (NASDAQ:CMCSA) operates as a media and technology company worldwide. It operates through Cable Communications, Media, Studios, Theme Parks, and Sky segments. Comcast Corporation (NASDAQ:CMCSA) is one of the biggest broadcasting and cable television companies in the world. On April 27, the company reported a Q1 non-GAAP EPS of $0.92 and a revenue of $29.69 billion, outperforming Wall Street estimates by $0.10 and $350 million, respectively. 

On May 1, BofA analyst Jessica Reif Ehrlich upgraded Comcast Corporation (NASDAQ:CMCSA) to Buy from Neutral with a price target of $49, up from $44. In a research note to investors, the analyst stated that Comcast Corporation (NASDAQ:CMCSA) reported strong financial results in the first quarter and management provided positive commentary. The firm believes that these results indicate a turning point for the company. 

According to Insider Monkey’s fourth quarter database, 72 hedge funds were bullish on Comcast Corporation (NASDAQ:CMCSA), compared to 73 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest position holder in the company. 

ClearBridge Multi Cap Growth Strategy made the following comment about Comcast Corporation (NASDAQ:CMCSA) in its Q4 2022 investor letter:

“That balance served the Strategy well throughout the year, enabling outperformance against the benchmark in all four quarters. Results in the last three months were driven by a long-time media position in Comcast Corporation (NASDAQ:CMCSA), which we consider a durable compounder due to its consistent revenue growth and free cash flow generation. Comcast shares saw a snapback after a difficult first half of the year caused by cord cutting in its cable business and slowing subscriber growth in its broadband business. A flexible balance sheet and strong cash generation enabled the company to repurchase shares during the selloff earlier in the year.”

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