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Tag: Media Stocks

  • The 3 Top Media Stocks to Watch for in 2021

    The 3 Top Media Stocks to Watch for in 2021

    The media segment has had a pump during the global pandemic, there’s much potential heading forward.

    Media industry is quite vast and brings a lot of opportunities for investors. The media companies produce and distributive movies, music, television shows, and series, and other programs.

    In the past decade or so, the use of smartphones and digital media outlets have massively increased screen time. More users are spending time watching movies, T.V. shows, and streaming networks due to outside restrictions. People in the US are now spending around 13+ hours interacting with some form of media each day.

    The evolution of social media has diversified traditional media companies. For instance, the media companies also have their streaming application or website, which is usually subscription-based. So, let’s have a look at the three top media stocks to watch for in 2021.

    Comcast Corp. (CMCSA)

    Comcast Corp. (CMCSA) is a telecommunications giant that owns the famous media network NBCUniversal. The company also pays a dividend and in the recent quarterly report, the dividend was increased.

    The company recently released its fourth-quarter 2020 results, which were quite impressive. The big media company recorded $27.71 billion in revenue during the quarter, beating the analyst estimates by nearly $1 billion. Though it was slightly down by 2% compared to the prior year. While the non-GAAP net income was $0.56 per share, which also surpassed estimates of $0.48 per share.

    So, the company is improving its quarterly results and as a result, it has raised the dividend. The new dividend that would be paid to the shareholders is $0.25 per share. This is almost a 9% increase preceding $0.23.

    The company has been quite active and has made notable developments recently. So, Comcast Corp. (CMCSA) is one of the stocks to watch from the media sector.

    Nexstar Media (NXST)

    Another prominent telecom firm, Nexstar Media (NXDT) is one of the stocks from the media sector that investors should be looking forward to. Nexstar was ranked No.1 in Local News for all the 12-months in 2020. The average viewership for each month was a mammoth 90 million.

    The company has gained a lot of attraction due to lockdown and the COVID times. The increase in average viewership soared over 70% year-over-year. The strong audience growth helped in record content engagement. Nexstar had almost 7.8 billion page views, up by 130% from 2019.

    The rapid growth last year has led the company to increase the quarterly cash dividend. The company upgraded the cash dividend to $0.70 of its Class A common stock, which reflects a 25% increase. Nexstar has a dividend yield of 2.22%, as we write this.

    ViacomCBS (VIAC)

    The renowned mass media firm, ViacomCBS (VIAC) is another media company that investors should keep in-sight. Though the legacy TV network has been facing pressure from cord-cutting. However, there are several aspects that could potentially help the stock to rise.

    The major aspect is ViacomCBS’ streaming aims, with a little support from marketwide short squeezes has helped the stock to soar quite high early in 2021. We can see more bullish sentiment around VIAC—in the coming days. That’s because, the company just generated $545 million in advertising spending during the NFL’s Super Bowl LV this past Sunday, as reported by Reuters. The commercial time during the entire game was for a record 57 minutes, with a 30-second ad sold around $5.6 million.

    Another positive for ViacomCBS (VIAC) its dividend, with a yield of 1.70%, as of writing time.

  • Best Media Companies that you cannot ignore in 2021

    Best Media Companies that you cannot ignore in 2021

    Media is creating a huge impact in our lives as well as in business. Everyone is spending 8 to10 hours per day interacting with media in one form or another. Media companies produce and promote their content to make money from our consumption. Media giants compete with one another to maintain their existence in this advanced era. Some of the media giants that may outperform in 2021 are discussed below.

    Cable One, Inc. (CABO)

    Cable One, Inc. (CABO) is a broadband communication provider that provides data, video, and voice services to more than 950,000 residential and business customers in the United States. The company entertains consumers with a wide array of connectivity and entertainment services involving high-speed internet and advanced Wi-Fi solution, cable television, and phone service.

    The company generated $339 million in the 3rd quarter of 2020 which is significantly higher than $285 million in the 3rd quarter of 2019. Analysts are expecting that Cable One will announce its sales revenue ranging from $1.32 billion to $1.34 billion for the current fiscal year. For the next fiscal year, it is expected that sales might be between $1.36 to $1.41 billion.

    The company’s overall progress seems good as it has grown both its revenue and profit over the last few years, but it has diluted shareholders by expanding its no of shares on issue by 5.5% over the last year which has created an impact on its earning per share. So it is important to keep an eye on its EPS which will decide the fate of its shareholders.

    Comcast Corporation (CMCSA)

    Comcast Corporation (CMCSA) is one of the biggest media and technology company that operates via cable communication, cable networks, broadcast television, Filmed Entertainment, Theme Parks, and Sky segments. The company has announced its fiscal fourth-quarter report on Thursday the results of which surpass the expectations of analysts.

    The company generated $27.71 billion revenue in the fourth quarter that is more than $26.78 billion expected by the Refinitiv survey of analysis with a rise of 6.9% in its net profit.538,000 high-speed internet customers were added as compared to 490,000 expected in the FactSet Survey. The company’s agreement to stream wrestling matches and the recent launch of “The Office” resulted in 33 million sign-ups in NBCUniversal’s Peacock which is far more than 22 million in the last quarter.

    Growth in net profit owes to the company’s broadband business but its movie and theme-park units suffered a lot due to the coronavirus pandemic. Theme-park revenue decreased 63% to $579 million and filmed entertainment division suffered an 8.3% drop in revenue to $1.43 billion.

    The company is optimistic to produce better results in 2021 as the rollout of vaccines will rebound its affected business areas.

    Netflix, Inc. (NFLX)

    Netflix Inc. (NFLX) is an American media service provider company that offers T.V series, documentaries, and feature films to its subscribers via a host of internet-connected screens. The company’s network is extended to 190 countries with roughly 200 million paid subscribers.

    Netflix has incredibly attracted the audience over the last few years through its engaging feature films, T.V series, and adult animated content. The company is also investing an enormous amount into children’s programming and animated films. The media company outperformed in the 4th quarter of 2020 and added more than 8.5 million subscribers to the list with increasing subscription prices.

    The company is playing smartly to wean itself from debt and to use its internally generated cash flow of $8.2 billion for future growth. Furthermore, the company’s management is taking an interest in share buyback which Netflix has not done in a decade. The current circumstances show that Netflix can be more profitable in the future due to a good cash flow in hand, faster rate of subscriptions and less relying on external finance for future growth.