Trade-Ideas: Nexstar Broadcasting Group (NXST) Is Today's New Lifetime High Stock

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 new lifetime high 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 $30.8 million.
  • NXST has traded 933,305 shares today.
  • NXST is trading at a new lifetime high.

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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 1.2%. NXST has a PE ratio of 6.9. 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 620,300 shares per day over the past 30 days. Nexstar Broadcasting Group has a market cap of $1.2 billion and is part of the services sector and media industry. The stock has a beta of 2.45 and a short float of 7.2% with 3.08 days to cover. Shares are up 264% year to date as of the close of trading on Monday.

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 buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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 0.5%. 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.
  • Compared to its closing price of one year ago, NXST's share price has jumped by 279.34%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NXST should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 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.
  • NEXSTAR BROADCASTING GROUP's earnings per share declined by 31.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, NEXSTAR BROADCASTING GROUP turned its bottom line around by earning $5.69 versus -$0.42 in the prior year. For the next year, the market is expecting a contraction of 80.2% in earnings ($1.12 versus $5.69).

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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