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Nexstar Broadcasting Group (NXST) Gains But Lags Market: What You Should Know

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In the latest trading session, Nexstar Broadcasting Group (NXST - Free Report) closed at $170.27, marking a +0.05% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 2.11% for the day. At the same time, the Dow added 1.18%, and the tech-heavy Nasdaq gained 2.96%.

Shares of the television broadcaster have depreciated by 1.05% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 2.14% and the S&P 500's gain of 3.08%.

Investors will be eagerly watching for the performance of Nexstar Broadcasting Group in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 28, 2024. The company's upcoming EPS is projected at $4.42, signifying a 45.02% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.32 billion, down 11.03% from the prior-year quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nexstar Broadcasting Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.65% lower. As of now, Nexstar Broadcasting Group holds a Zacks Rank of #4 (Sell).

From a valuation perspective, Nexstar Broadcasting Group is currently exchanging hands at a Forward P/E ratio of 5.73. This indicates a discount in contrast to its industry's Forward P/E of 8.69.

One should further note that NXST currently holds a PEG ratio of 0.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Broadcast Radio and Television industry had an average PEG ratio of 0.61 as trading concluded yesterday.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 40% 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.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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