Trade-Ideas: Nexstar Broadcasting Group (NXST) Is Today's Strong And Under The Radar 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 strong and under the radar 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 $19.1 million.
  • NXST is making at least a new 3-day high.
  • NXST has a PE ratio of 78.4.
  • NXST is mentioned 1.39 times per day on StockTwits.
  • NXST has not yet been mentioned on StockTwits today.
  • NXST is currently in the upper 20% of its 1-year range.
  • NXST is in the upper 35% of its 20-day range.
  • NXST is in the upper 45% of its 5-day range.
  • NXST is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on NXST:

Nexstar Broadcasting Group, Inc. operates as a television broadcasting and digital media company in the United States. It focuses on the acquisition, development, and operation of television stations and interactive community Websites in medium-sized markets. The stock currently has a dividend yield of 1.2%. NXST has a PE ratio of 78.4. Currently there are 4 analysts that rate Nexstar Broadcasting Group a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Nexstar Broadcasting Group has been 390,700 shares per day over the past 30 days. Nexstar Broadcasting Group has a market cap of $1.6 billion and is part of the services sector and media industry. The stock has a beta of 2.34 and a short float of 18% with 12.93 days to cover. Shares are down 9.9% year-to-date as of the close of trading on Tuesday.

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 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.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.1%. 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 16.46%.
  • 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).

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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