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Gray Television (GTN) Laps the Stock Market: Here's Why

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Gray Television (GTN - Free Report) ended the recent trading session at $5.36, demonstrating a +0.94% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.42%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.38%.

The the stock of broadcast television company has risen by 4.12% in the past month, lagging the Consumer Discretionary sector's gain of 4.24% and overreaching the S&P 500's gain of 2.06%.

Market participants will be closely following the financial results of Gray Television in its upcoming release. The company is predicted to post an EPS of $1.24, indicating a 317.54% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $966 million, indicating a 20.3% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.97 per share and revenue of $3.87 billion. These totals would mark changes of +457.55% and +17.86%, respectively, from last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Gray Television. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Gray Television possesses a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Gray Television has a Forward P/E ratio of 1.07 right now. This valuation marks a discount compared to its industry's average Forward P/E of 9.77.

Investors should also note that GTN has a PEG ratio of 0.11 right now. 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. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 0.88 based on yesterday's closing prices.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 184, finds itself in the bottom 28% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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