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 TEGNA Inc. (NYSE:TGNA) 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).
A close-up of hands typing on a laptop, highlighting the company’s digital content.
TEGNA Inc. (NYSE:TGNA)
Number of Hedge Fund Holders: 24
TEGNA Inc. (NYSE:TGNA) is a US-based media company that focuses on local news and entertainment. It operates a portfolio of television stations, which offer news content across various platforms. It also owns and operates multicast networks, produces original content, and provides advertising solutions to businesses.
In the third quarter of 2024, the total company revenue surged 13% year-over-year to $807 million. This performance was primarily driven by a record-breaking quarter for political advertising and a substantial increase in core linear advertising. It was fueled by the success of the Summer Olympics across the company’s NBC stations. This positive momentum is expected to continue into the fourth quarter, with total company GAAP revenue projected to increase by 19% to 21% year-over-year.
Beyond revenue growth, TEGNA Inc. (NYSE:TGNA) is pursuing strategies to enhance growth within its broadcasting segment. This includes the ongoing efforts to reduce costs in legacy operations. The company is focusing on expanding its reach and better serving users through digital channels. This includes exploring opportunities to deepen user engagement. It’s also using AI to drive efficiency.
Overall TGNA ranks 6th on our list of the best broadcasting stocks to buy now. While we acknowledge the potential of TGNA 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 TGNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
