7 Best Entertainment Stocks To Buy According to Analysts

1. Lions Gate Entertainment Corp. (NYSE:LGF-B)

Average Upside Potential: 62.96%

Number of Hedge Fund Holders: 25 

Lions Gate Entertainment Corp. (NYSE:LGF-B) is a global entertainment leader. Lions Gate operates one of the largest independent motion picture companies in the world, the Lionsgate Motion Picture Group. The company’s television business Lionsgate Television Group encompasses over 100 shows spanning numerous platforms. Lions Gate also operates a premium global subscription platform STARZ with a focused content strategy driving continued growth. Additionally, Lionsgate Studios serves as one of the leading stand-alone, pure-play public content companies.

The company’s 20,000+ title film and television library has given it the privilege of having one of the largest and most valuable title film and television libraries. Lionsgate Worldwide Television Distribution Group enables the distribution of current properties from the studio’s Television and Motion Picture Groups and the select STARZ original series to more than 250 clients covering AVOD, SVOD, linear, and free TV platforms.

For the first quarter of fiscal 2025, Lions Gate Entertainment Corp. (NYSE:LGF-B) reported solid results despite strikes and industry disruption. The Studio Business comprising the Motion Picture and Television Production segments experienced a 5.9% decline in revenue year-over-year. Motion Picture segment profit rose with performance driven by strong theatrical results from The Strangers: Chapter One, robust home entertainment performances from various theatrical titles, and lower P&A spend and content amortization.

Television Production segment revenue experienced a profit decline due to the strikes affecting the timing of deliveries in a heavily backloaded year. Simultaneously, Media Networks North American revenue grew 1% to $345.3 million. Therefore, Lions Gate Entertainment Corp. (NYSE:LGF-B) is a leading entertainment company supported by resilient businesses.

While we acknowledge the potential of LGF-B as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than LGF-B but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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