This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cash is King and so Are Sinclair and Nexstar

Stocks in this article: AMZN NFLX SBGI NXST CBS

If it goes down that low again and you have $6,450 in cash you'll be able to buy 112 shares. That's how investors can get rich investing in stocks, not by buying at stock or market highs. By the way, Netflix will report quarterly earnings on Oct. 21, and the current price appears to reflect the great EPS growth expected.

With many companies guiding downward and profit growth likely to be restrained for now, investors needs to look for stocks with the strongest EPS growth prospects.

According to Ned Davis Research, since June 28 (after the last market correction) companies with the best EPS growth outperformed weak ones by more than 4% between then and now.

One subsector that has done well the past year and still has promising upside with outstanding growth prospects are the local TV broadcasters that carry the local news and reruns of still popular sitcoms.

Two good examples are Sinclair Broadcast Group (SBGI) and Nexstar Broadcast Group (NXST). Both have boomed in the past 12 months.

Sinclair Broadcast is not a one-trick pony. It's a television broadcasting company that owns or provides programming, operating, or sales services to television stations in the United States.

It broadcasts free over-the-air programming, such as network provided programs, locally produced news shows, local sporting events, programming from program service arrangements, syndicated entertainment programs, and other locally produced programs.

Sinclair owns and operates programs or provides sales services to 162 television stations in 77 markets, after pending transactions.

Sinclair's television group reaches approximately 38.7% of U.S. television households and includes FOX, ABC, MyTV, CW, CBS, NBC, Univision and Azteca affiliates. In addition, Sinclair owns four radio stations." It was founded in 1986 and went public in 1995.

Sinclair will report its third quarter earnings Nov. 6.

The story with both Sinclair and Nexstar is extra-juicy because both companies have valuable spectrum that could be leased or sold to wireless companies. Analysts who are bullish on broadcasters believe the two companies have spectrum licenses that could be worth as much as the companies' total market value today! Sinclair has a $3.5 billion market cap and Nexstar is a much smaller $1.35 billion.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs