This Small-Cap Media Stock Has Outperformed Disney, Comcast In The Last 5 Years: Can It Keep The Run Going?


A small media company that owns one of the top portfolios of big four network television stations has outperformed media giants and could continue to see strong returns with acquisitions, sports wagering launches and share buybacks.

About Nexstar Media: The largest local television and media company in the U.S. is Nexstar Media Group NXST.

The company boasts a portfolio of 199 full power stations across 116 markets. The company’s portfolio covers 68% of the U.S. television household populations.

Nexstar also has over 120 local media websites and over 280 local mobile apps. The company has a massive reach for local television content and news.

The company has 85% of its big four network television partners contracted through 2022.

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What’s Next: One item that could propel Nexstar Media further is its push into sports betting and fantasy sports.

The company announced a partnership with SportsGrid to offer “SportsGrid Network,” a 24-hour daily sports wagering and fantasy sports network, in nine markets on Sept. 1. This marks the first and only 24-hour digital network for the segment.

Customers can find “SportsGrid Network” on cable television, streaming platforms, mobile devices, online and via connected smart TVs.

Nexstar acquired The Hill, an independent political digital media platform, in August. The integration of increased political coverage could lead to strong advertising growth and make the company one to watch during election seasons.

The company returned $167.7 million to shareholders via dividends and buybacks in the second quarter. Nexstar’s six-month total for dividends and buybacks came close to surpassing the total amount from fiscal 2020.

The company has $916 million remaining under a current share buyback authorization, which could shrink the number of shares outstanding and boost earnings per share.

Nexstar had advertising revenue of $432 million in the second quarter, up 35% year-over-year. Distribution and digital revenue were up 15% year-over-year and 57% year-over-year, respectively. The company’s total revenue of $1.13 billion increased 23.7% year-over-year.

Nexstar will report third-quarter financial results Nov. 2.

Nexstar's Share Returns: Over the last five years, shares of Nexstar have increased 169%. The company continues to gain through increased scale and increased advertising spending on television.

Nexstar’s stock price appreciation has beaten many media companies over the same time period, including the Walt Disney Company DIS and Comcast Corp CMCSA.

DIS shares are up 99% over the last five years.

CMCSA shares are up 82% over the last five years.

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