Nexstar Broadcasting Group (NXST) closed the most recent trading day at $143.70, moving +1.23% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.64%. At the same time, the Dow lost 1.08%, and the tech-heavy Nasdaq lost 1.82%.
Coming into today, shares of the television broadcaster had lost 9.42% in the past month. In that same time, the Consumer Discretionary sector lost 2.8%, while the S&P 500 gained 0.89%.
Nexstar Broadcasting Group will be looking to display strength as it nears its next earnings release. On that day, Nexstar Broadcasting Group is projected to report earnings of $1.68 per share, which would represent a year-over-year decline of 76.99%. Our most recent consensus estimate is calling for quarterly revenue of $1.19 billion, down 5.89% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.69 per share and revenue of $5.02 billion. These totals would mark changes of -56.54% and -3.7%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Nexstar Broadcasting Group. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 0.68% lower. Nexstar Broadcasting Group is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Nexstar Broadcasting Group is currently trading at a Forward P/E ratio of 12.15. This valuation marks a discount compared to its industry's average Forward P/E of 12.77.
Investors should also note that NXST has a PEG ratio of 1.56 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. NXST's industry had an average PEG ratio of 1.42 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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