We recently compiled a list of the 12 Best Broadcasting Stocks to Buy Right Now. In this article, we are going to take a look at where Nexstar Media Group Inc. (NASDAQ:NXST) stands against the other broadcasting stocks.
The global broadcasting and cable TV market size was estimated at $356.45 billion in 2024, according to Grand View Research. It is projected to grow at a CAGR of 4% from 2025 to 2030 and reach $449.91 billion. This is driven by the increasing demand for on-demand and live content, which is fueled by the rise in digital consumption and global connectivity. Viewers seek content in high-definition, which includes news, sports, and entertainment. Rising income levels and increased television ownership in today’s emerging markets are also behind this demand. Broadcasters capitalize on these trends by offering flexible subscription models and specialized content for a broader audience base.
This industry is supported by the governments, technological advancements, and evolving consumer demands. Government initiatives, such as subsidies and investments in digital infrastructure, are expanding access to broadcasting services, particularly in underserved areas. It’s capitalizing on digital platforms, which offer streaming and hybrid models to reach diverse audiences and cater to their preferences. Technological innovations, which include 5G, cloud-based broadcasting, and AI-powered personalization, are all enhancing the viewer experience and driving demand for higher-quality content.
NewscastStudio recently reported that the dominance of mobile devices in content consumption is fundamentally reshaping the broadcasting landscape. There are 4.88 billion smartphone users globally and mobiles account for over 60% of global internet traffic. Therefore, broadcasters are prioritizing mobile-first strategies. This shift necessitates a significant adaptation, moving beyond traditional television formats. Key changes include an emphasis on vertical video formats, which mirrors the dominant style on platforms like TikTok and Instagram. Broadcasters are increasingly creating content specifically for mobile viewing by recognizing the need to optimize for smaller screens and shorter attention spans. Interactive elements like live polls, chats, and games are also being integrated to enhance viewer engagement and create the interactive nature of social media.
Production processes are now centered around mobile viewing experiences, and consider factors like background viewing and optimizing for limited bandwidth. The expansion of 5G networks is crucial for this, as it enables faster and more reliable data transmission. Advanced compression technologies are also vital for ensuring seamless streaming experiences, especially in areas with limited bandwidth. These changes reflect the need for broadcasters to be adaptable in a rapidly evolving media landscape.
The modern broadcasting environment embraces mobile-first strategies and invests in innovative technologies.
Methodology
We first sifted through ETFs, online rankings, and internet lists to compile a list of the top broadcasting stocks. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An aerial view of a broadcasting company’s television stations, showing the power of the company’s media presence.
Nexstar Media Group Inc. (NASDAQ:NXST)
Number of Hedge Fund Holders: 32
Nexstar Media Group Inc. (NASDAQ:NXST) is a media company in the US that owns and operates a large portfolio of television stations. It produces and distributes local and national news, sports, and entertainment content. It also has a strong digital presence, which includes news websites, streaming platforms, and advertising solutions.
Its revenue reached a record $1.37 billion, up 20.7% year-over-year. This was driven by both the distribution and advertising revenue. Distribution revenue hit an all-time high of $719 million, a 20.2% year-over-year increase. This came from favorable contract renewals and growth in virtual multichannel video programming distributors’ subscribers. Advertising revenue rose by 22.2% due to record political advertising revenue of $154 million. However, non-political advertising declined 4.5% year-over-year.
Nexstar Media Group Inc. (NASDAQ:NXST) recently underwent an agreement with NBCUniversal for a multi-year renewal of NBC affiliations for 33 television stations across the US, reaching over 14 million households. The agreement covers 29 Nexstar-owned stations, as well as stations owned by Mission Broadcasting and White Knight Broadcasting. This renewal secures the company’s access to NBC programming and advertising revenue across a portion of its station portfolio. This contributes to revenue stability and drives future growth.
Overall NXST ranks 3rd on our list of the best broadcasting stocks to buy now. While we acknowledge the potential of NXST as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NXST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.