Trade-Ideas: Nexstar Broadcasting Group (NXST) Is Today's

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Nexstar Broadcasting Group ( NXST) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Nexstar Broadcasting Group as such a stock due to the following factors:

  • NXST has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.1 million.
  • NXST has traded 84,344 shares today.
  • NXST is down 3% today.
  • NXST was up 6.5% yesterday.

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More details on NXST:

Nexstar Broadcasting Group, Inc., a television broadcasting and digital media company, focuses on the acquisition, development, and operation of television stations and interactive community Websites in medium-sized markets in the United States. The stock currently has a dividend yield of 1.4%. NXST has a PE ratio of 6.0. Currently there are 4 analysts that rate Nexstar Broadcasting Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Nexstar Broadcasting Group has been 645,700 shares per day over the past 30 days. Nexstar Broadcasting Group has a market cap of $1.0 billion and is part of the services sector and media industry. The stock has a beta of 2.69 and a short float of 4.4% with 1.63 days to cover. Shares are up 241% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Nexstar Broadcasting Group as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk.

Highlights from the ratings report include:
  • Compared to other companies in the Media industry and the overall market, NEXSTAR BROADCASTING GROUP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The revenue growth greatly exceeded the industry average of 2.4%. Since the same quarter one year prior, revenues rose by 42.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for NEXSTAR BROADCASTING GROUP is rather high; currently it is at 64.09%. Regardless of NXST's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.04% trails the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 27.8% when compared to the same quarter one year ago, falling from $8.82 million to $6.37 million.
  • Net operating cash flow has significantly decreased to $0.73 million or 95.54% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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