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Gray Television (GTN) Stock Declines While Market Improves: Some Information for Investors

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Gray Television (GTN - Free Report) ended the recent trading session at $4.91, demonstrating a -0.2% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.77%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 0.95%.

The the stock of broadcast television company has fallen by 25% in the past month, lagging the Consumer Discretionary sector's loss of 1.38% and the S&P 500's gain of 3.71%.

Market participants will be closely following the financial results of Gray Television in its upcoming release. On that day, Gray Television is projected to report earnings of $0.10 per share, which would represent year-over-year growth of 200%. In the meantime, our current consensus estimate forecasts the revenue to be $834 million, indicating a 2.58% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.25 per share and revenue of $3.88 billion. These totals would mark changes of +477.7% and +18.38%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Gray Television. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Gray Television is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Gray Television currently has a Forward P/E ratio of 0.94. This denotes a discount relative to the industry's average Forward P/E of 7.93.

Investors should also note that GTN has a PEG ratio of 0.09 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 0.85 based on yesterday's closing prices.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 80, placing it within the top 32% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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