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Nexstar Broadcasting Group (NXST) Outpaces Stock Market Gains: What You Should Know

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Nexstar Broadcasting Group (NXST - Free Report) closed the most recent trading day at $177.01, moving +1.09% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 11.47%.

Heading into today, shares of the television broadcaster had gained 4.03% over the past month, outpacing the Consumer Discretionary sector's gain of 1.26% and the S&P 500's gain of 3.34% in that time.

Nexstar Broadcasting Group will be looking to display strength as it nears its next earnings release, which is expected to be August 8, 2023. In that report, analysts expect Nexstar Broadcasting Group to post earnings of $2.88 per share. This would mark a year-over-year decline of 48.2%. Meanwhile, our latest consensus estimate is calling for revenue of $1.25 billion, up 0.29% from the prior-year quarter.

NXST's full-year Zacks Consensus Estimates are calling for earnings of $13.15 per share and revenue of $5.11 billion. These results would represent year-over-year changes of -51.12% and -2.02%, respectively.

Any recent changes to analyst estimates for Nexstar Broadcasting Group should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 8.32% higher. Nexstar Broadcasting Group currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Nexstar Broadcasting Group has a Forward P/E ratio of 13.31 right now. For comparison, its industry has an average Forward P/E of 13.88, which means Nexstar Broadcasting Group is trading at a discount to the group.

Also, we should mention that NXST has a PEG ratio of 1.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.49 based on yesterday's closing prices.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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