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3 Broadcast Radio & TV Stocks to Buy From a Challenging Industry
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The Zacks Broadcast Radio and Television industry has been grappling with an escalation in cord-cutting despite a surge in demand for streaming content. However, industry players, such as Fox (FOXA - Free Report) , Bilibili (BILI - Free Report) and Sirius XM (SIRI - Free Report) , are reaping the benefits of a massive spike in digital content consumption. These companies are thriving due to their diverse content offerings, which include original, regional, and short-form content tailored for small screens like smartphones and tablets. Improved Internet speed and penetration, coupled with technological advancements, have been advantageous for industry participants. As monetization and revenues from advertising spending continue to be modest, strategies focused on profit protection, cash management and greater technology integration have gained significance and are expected to aid these companies in driving top-line growth in the near term.
Industry Description
The Zacks Broadcast Radio and Television industry encompasses companies that provide entertainment, sports, news, non-fiction, and musical content across television, radio and digital media platforms. These entities generate revenues through the sale of television and radio programs, advertising slots and subscriptions. With technological advancements and a growing demand for virtual reality and Internet radio, industry players are increasing their investments in research and development, as well as sales and marketing efforts, to remain competitive. The industry's focus is likely to shift toward sustaining current levels of operations, coupled with a renewed emphasis on flexibility. This approach would accelerate the transition to a variable cost model, thereby reducing fixed costs and enhancing agility in the face of evolving market dynamics.
4 Broadcast Radio and Television Industry Trends to Watch
Shift in Consumer Preference a Key Catalyst: To adapt to the evolving landscape, companies are diversifying their content offerings for over-the-top (OTT) services alongside traditional linear TV. The availability of streaming services across a wide range of platforms has enabled them to reach a global audience, expand their international user base and attract advertisers to their platforms, thereby boosting ad revenues. The utilization of services that aid advertisers in measuring their return on investment and enhancing use cases is expected to benefit industry participants. Major leagues and events, such as the NFL, NHL, Olympics, European Games, EPL and elections, also contribute significantly to ad revenue generation.
Increased Digital Viewing Fuels Content Demand: Many industry participants, either launching their own OTT services or acquiring existing ones, leverage user insights to deliver tailored content. The surge in digital viewing has made consumer data readily available, allowing companies to apply artificial intelligence (AI) and machine learning techniques to create or procure targeted content. This approach not only boosts user engagement but also enables industry players to raise the prices of their services at opportune moments without the fear of losing subscribers.
Uncertain Macroeconomic Landscape Impedes Production and Ad Demand: Advertising is a significant revenue source for the Broadcast Radio and Television industry. However, industry participants are grappling with the effects of persistently high inflation, rising interest rates, increased capital costs, a soaring U.S. dollar and the looming threat of a recession. These factors have prompted advertisers to trim their ad budgets, which is expected to impact the top-line growth of industry players in the near term. Moreover, intense competition for ad dollars from tech and social media companies has been a significant impediment to the growth of industry participants.
Low-Priced Skinny Bundles Impact Revenues: The surge in cord-cutting has compelled industry participants to offer "skinny bundles." These Internet-based services often contain fewer channels than traditional subscriptions and are, therefore, more affordable. This move aligns with changing consumer viewing dynamics, as growth in Internet penetration and advancements in mobile, video and wireless technologies have boosted small-screen viewing. While these alternative services are expected to keep users engaged with their platforms, increasing the need for additional content, the low-priced skinny bundles are likely to dampen the top-line performance of industry players.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Broadcast Radio and Television industry is housed within the broader Zacks Consumer Discretionary sector. It currently carries a Zacks Industry Rank #171, which places it in the bottom 29% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dismal near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the bottom 50% of the Zacks-ranked industries results from a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group’s earnings growth potential.
Despite the gloomy industry outlook, a few stocks are worth watching, as these have the potential to outperform the market based on a strong earnings outlook. But before we present such stocks, it is worth first looking at the industry’s shareholder returns and current valuation.
Industry Lags Sector, S&P 500
The Zacks Broadcast Radio and Television industry has underperformed the broader Zacks Consumer Discretionary sector and the S&P 500 Index in the past six-month period.
The industry has lost 13.9% over this period compared with the S&P 500’s growth of 11.8% and the broader sector’s decline of 8.1%.
6-Month Price Performance
Industry's Current Valuation
On the basis of trailing 12-month Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA), which is a commonly used multiple for valuing Broadcast Radio and Television stocks, the industry is currently trading at 8.71X versus the S&P 500’s 18.64X and the sector’s 10.4X.
In the past five years, the industry has traded as high as 15.63X and as low as 4.47X, recording a median of 8.49X, as the chart below shows.
EV/EBITDA Ratio (TTM)
3 Broadcast Radio and Television Stocks to Buy
Fox Corporation: This Zacks Rank #2 (Buy) company presents a compelling buy opportunity for 2026, anchored by transformative catalysts. It will broadcast all 104 FIFA World Cup 2026 matches across FOX and FS1, representing its largest production in a 32-year history, driving substantial advertising revenue with over 340 hours of programming, 100 hours more than the 2022 tournament. Tubi achieved profitability in the first quarter of 2026 with 27% revenue growth, marking a critical inflection point for Fox's digital strategy. Management's confidence is evident through a $1.5 billion accelerated share repurchase program commencing in October 2025, returning capital to shareholders while capitalizing on Tubi's monetization trajectory. With strong NFL viewership, expanding digital streaming capabilities, and the historic World Cup opportunity ahead, Fox Corporation remains exceptionally positioned for 2026 growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for fiscal 2026 earnings has moved north by 0.2% to $4.42 per share in the past 60 days. FOXA shares have returned 29.9% in the past six-month period.
Price and Consensus: FOXA
Bilibili: This Zacks Rank #2 company presents a buy opportunity for 2026 as China's leading Gen Z video platform transitions into sustainable profitability. Following Q3 2025 results showing a historic turnaround to RMB469 million net profit versus prior-year losses, the platform's advertising revenues surged 23% year over year while gross margins expanded to 36.7% for the 13th consecutive quarter. With 117 million daily active users spending record 112-minute sessions and monthly paying users reaching 35 million, monetization efficiency is accelerating. December's launch of 13 new games, including Trickster's Mischief, diversifies revenue beyond hit-driven titles, while AI-powered content tools enhance creator productivity and ad targeting effectiveness. Management's share buyback program and robust RMB23.5 billion cash position underscore confidence in sustained profitability amid expanding operating leverage.
The Zacks Consensus Estimate for 2026 earnings has increased 1.9% to $1.05 per share in the past 60 days. BILI shares have gained 17.8% in the past six-month period.
Price and Consensus: BILI
SiriusXM Holdings: This Zacks Rank #2 company presents compelling upside potential entering 2026 following strategic developments in December 2025. The renewal of Howard Stern through 2028 secures marquee content, while Zachary Coughlin's CFO appointment brings automotive and consumer finance expertise critical for profitability optimization. Management targets $1.5 billion free cash flow by 2027, supported by $200 million annualized cost savings achieved in 2025. The company's dominant 90% in-car subscriber base provides defensible market positioning amid expanding automotive partnerships. Debt reduction initiatives target a 3.6x leverage ratio, while maintaining a sustainable 5% dividend yield. Combined with 31% EBITDA margins and strategic focus on core automotive subscriptions, SiriusXM offers attractive fundamentals for long-term growth.
The Zacks Consensus Estimate for 2026 earnings has moved north by 1.7% to $3.08 per share in the past 60 days. In the past six-month period, SIRI shares have declined 17.7%.
Price and Consensus: SIRI
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3 Broadcast Radio & TV Stocks to Buy From a Challenging Industry
The Zacks Broadcast Radio and Television industry has been grappling with an escalation in cord-cutting despite a surge in demand for streaming content. However, industry players, such as Fox (FOXA - Free Report) , Bilibili (BILI - Free Report) and Sirius XM (SIRI - Free Report) , are reaping the benefits of a massive spike in digital content consumption. These companies are thriving due to their diverse content offerings, which include original, regional, and short-form content tailored for small screens like smartphones and tablets. Improved Internet speed and penetration, coupled with technological advancements, have been advantageous for industry participants. As monetization and revenues from advertising spending continue to be modest, strategies focused on profit protection, cash management and greater technology integration have gained significance and are expected to aid these companies in driving top-line growth in the near term.
Industry Description
The Zacks Broadcast Radio and Television industry encompasses companies that provide entertainment, sports, news, non-fiction, and musical content across television, radio and digital media platforms. These entities generate revenues through the sale of television and radio programs, advertising slots and subscriptions. With technological advancements and a growing demand for virtual reality and Internet radio, industry players are increasing their investments in research and development, as well as sales and marketing efforts, to remain competitive. The industry's focus is likely to shift toward sustaining current levels of operations, coupled with a renewed emphasis on flexibility. This approach would accelerate the transition to a variable cost model, thereby reducing fixed costs and enhancing agility in the face of evolving market dynamics.
4 Broadcast Radio and Television Industry Trends to Watch
Shift in Consumer Preference a Key Catalyst: To adapt to the evolving landscape, companies are diversifying their content offerings for over-the-top (OTT) services alongside traditional linear TV. The availability of streaming services across a wide range of platforms has enabled them to reach a global audience, expand their international user base and attract advertisers to their platforms, thereby boosting ad revenues. The utilization of services that aid advertisers in measuring their return on investment and enhancing use cases is expected to benefit industry participants. Major leagues and events, such as the NFL, NHL, Olympics, European Games, EPL and elections, also contribute significantly to ad revenue generation.
Increased Digital Viewing Fuels Content Demand: Many industry participants, either launching their own OTT services or acquiring existing ones, leverage user insights to deliver tailored content. The surge in digital viewing has made consumer data readily available, allowing companies to apply artificial intelligence (AI) and machine learning techniques to create or procure targeted content. This approach not only boosts user engagement but also enables industry players to raise the prices of their services at opportune moments without the fear of losing subscribers.
Uncertain Macroeconomic Landscape Impedes Production and Ad Demand: Advertising is a significant revenue source for the Broadcast Radio and Television industry. However, industry participants are grappling with the effects of persistently high inflation, rising interest rates, increased capital costs, a soaring U.S. dollar and the looming threat of a recession. These factors have prompted advertisers to trim their ad budgets, which is expected to impact the top-line growth of industry players in the near term. Moreover, intense competition for ad dollars from tech and social media companies has been a significant impediment to the growth of industry participants.
Low-Priced Skinny Bundles Impact Revenues: The surge in cord-cutting has compelled industry participants to offer "skinny bundles." These Internet-based services often contain fewer channels than traditional subscriptions and are, therefore, more affordable. This move aligns with changing consumer viewing dynamics, as growth in Internet penetration and advancements in mobile, video and wireless technologies have boosted small-screen viewing. While these alternative services are expected to keep users engaged with their platforms, increasing the need for additional content, the low-priced skinny bundles are likely to dampen the top-line performance of industry players.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Broadcast Radio and Television industry is housed within the broader Zacks Consumer Discretionary sector. It currently carries a Zacks Industry Rank #171, which places it in the bottom 29% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dismal near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the bottom 50% of the Zacks-ranked industries results from a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group’s earnings growth potential.
Despite the gloomy industry outlook, a few stocks are worth watching, as these have the potential to outperform the market based on a strong earnings outlook. But before we present such stocks, it is worth first looking at the industry’s shareholder returns and current valuation.
Industry Lags Sector, S&P 500
The Zacks Broadcast Radio and Television industry has underperformed the broader Zacks Consumer Discretionary sector and the S&P 500 Index in the past six-month period.
The industry has lost 13.9% over this period compared with the S&P 500’s growth of 11.8% and the broader sector’s decline of 8.1%.
6-Month Price Performance
Industry's Current Valuation
On the basis of trailing 12-month Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA), which is a commonly used multiple for valuing Broadcast Radio and Television stocks, the industry is currently trading at 8.71X versus the S&P 500’s 18.64X and the sector’s 10.4X.
In the past five years, the industry has traded as high as 15.63X and as low as 4.47X, recording a median of 8.49X, as the chart below shows.
EV/EBITDA Ratio (TTM)
3 Broadcast Radio and Television Stocks to Buy
Fox Corporation: This Zacks Rank #2 (Buy) company presents a compelling buy opportunity for 2026, anchored by transformative catalysts. It will broadcast all 104 FIFA World Cup 2026 matches across FOX and FS1, representing its largest production in a 32-year history, driving substantial advertising revenue with over 340 hours of programming, 100 hours more than the 2022 tournament. Tubi achieved profitability in the first quarter of 2026 with 27% revenue growth, marking a critical inflection point for Fox's digital strategy. Management's confidence is evident through a $1.5 billion accelerated share repurchase program commencing in October 2025, returning capital to shareholders while capitalizing on Tubi's monetization trajectory. With strong NFL viewership, expanding digital streaming capabilities, and the historic World Cup opportunity ahead, Fox Corporation remains exceptionally positioned for 2026 growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for fiscal 2026 earnings has moved north by 0.2% to $4.42 per share in the past 60 days. FOXA shares have returned 29.9% in the past six-month period.
Price and Consensus: FOXA
Bilibili: This Zacks Rank #2 company presents a buy opportunity for 2026 as China's leading Gen Z video platform transitions into sustainable profitability. Following Q3 2025 results showing a historic turnaround to RMB469 million net profit versus prior-year losses, the platform's advertising revenues surged 23% year over year while gross margins expanded to 36.7% for the 13th consecutive quarter. With 117 million daily active users spending record 112-minute sessions and monthly paying users reaching 35 million, monetization efficiency is accelerating. December's launch of 13 new games, including Trickster's Mischief, diversifies revenue beyond hit-driven titles, while AI-powered content tools enhance creator productivity and ad targeting effectiveness. Management's share buyback program and robust RMB23.5 billion cash position underscore confidence in sustained profitability amid expanding operating leverage.
The Zacks Consensus Estimate for 2026 earnings has increased 1.9% to $1.05 per share in the past 60 days. BILI shares have gained 17.8% in the past six-month period.
Price and Consensus: BILI
SiriusXM Holdings: This Zacks Rank #2 company presents compelling upside potential entering 2026 following strategic developments in December 2025. The renewal of Howard Stern through 2028 secures marquee content, while Zachary Coughlin's CFO appointment brings automotive and consumer finance expertise critical for profitability optimization. Management targets $1.5 billion free cash flow by 2027, supported by $200 million annualized cost savings achieved in 2025. The company's dominant 90% in-car subscriber base provides defensible market positioning amid expanding automotive partnerships. Debt reduction initiatives target a 3.6x leverage ratio, while maintaining a sustainable 5% dividend yield. Combined with 31% EBITDA margins and strategic focus on core automotive subscriptions, SiriusXM offers attractive fundamentals for long-term growth.
The Zacks Consensus Estimate for 2026 earnings has moved north by 1.7% to $3.08 per share in the past 60 days. In the past six-month period, SIRI shares have declined 17.7%.
Price and Consensus: SIRI