Nexstar Media, America's largest local broadcast TV group, has earned a spot on the IBD Breakout Stocks Index. With its relative strength line already at a new high, Nexstar is writing the script for a new buy point and has just hired former CNN host Chris Cuomo.
Nexstar Media produces and distributes local and national news, sports and entertainment content. In addition to its leading position in TV, Nexstar is one of the world's leading diversified media companies.
With a 96 Composite Rating, it earns top billing in the Media-Radio/TV industry group. Over the last three years, Nexstar has produced average annual earnings growth of 69%. Analysts expect 36% EPS growth for the current year.
Sales growth has averaged 23% annually over the last three years. The company sports passing marks in Stock Checkup for its SMR Rating, which tracks sales growth, profit margins and return on equity.
Nexstar made the latest list of new buys by the best mutual funds. Plus, 67 funds with an "A+" rating from IBD owns shares of NXST stock.
In 2005, Nexstar took a groundbreaking stand in requesting payment from pay-TV services for the retransmission of local programming. That forged a new type of relationship benefiting Nexstar and other local broadcasters. That changed the media landscape, with retransmission fees now accounting for a substantial portion of local broadcasters' revenue.
Where Is Former CNN Host Chris Cuomo Now?
Last month, Nexstar's NewsNation network announced that "Cuomo" has begun production and will debut Oct. 3. Chris Cuomo will host the prime-time news show.
CNN fired Cuomo in 2021 after news surfaced that he aided his brother, former New York governor Andrew Cuomo, when the then-governor was accused of sexual harassment.
Nexstar Stock Finds Support For New Buy Point
After breaking out in August, Nexstar pulled back to form its current flat base. The buy point is 204.72.
Within that chart pattern, the stock has found support at its 50-day moving average. It is now testing resistance at its shorter-term 21-day line.
As the market indexes continue to struggle in the current correction, look for Nexstar Media to hold support at its key moving averages and break out as market conditions improve.
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