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NEW YORK (TheStreet) -- Nexstar Broadcasting (NXST) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEXSTAR BROADCASTING GROUP (NXST) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 8.9%. Since the same quarter one year prior, revenues rose by 25.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 328.5% when compared to the same quarter one year prior, rising from $3.60 million to $15.40 million.
- Net operating cash flow has increased to $47.22 million or 48.05% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 16.34%.
- The gross profit margin for NEXSTAR BROADCASTING GROUP is rather high; currently it is at 63.76%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.76% trails the industry average.
- NEXSTAR BROADCASTING GROUP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NEXSTAR BROADCASTING GROUP swung to a loss, reporting -$0.08 versus $5.69 in the prior year. This year, the market expects an improvement in earnings ($1.85 versus -$0.08).
- You can view the full analysis from the report here: NXST Ratings Report