Tuesday's IBD 50 Stock To Watch pick Nexstar Media is one of the top stocks to watch in the strengthening stock market uptrend. NXST stock reversed slightly higher, rising 0.2% to trade just 2% off its latest buy point Tuesday afternoon.
America's largest local broadcast TV group, Nexstar Media produces and distributes local and national news, sports and entertainment content. In addition to its leading position in television, Nexstar is one of the world's leading diversified media companies.
The company's quarterly results are due out Feb. 28. Wall Street expects Nexstar to earn $8.39 per share on revenue of $1.49 billion, up 36% and 20%, respectively, vs. the year-ago period.
On Jan. 27, Nexstar upped its quarterly dividend 50% to $1.35 per share. The increase sparked a 4% move higher in shares of Nexstar, which briefly touched a new high.
Nexstar's IBD Stock Ratings
This media stock to buy and watch shows a strong 98 out of 99 Earnings Per Share Rating and an SMR Rating of "B", according to IBD Stock Checkup.
Over the last three years, Nexstar has produced average annual earnings growth of 69%. Analysts expect 42% EPS growth for the current year. Sales growth has averaged 23% annually over the last three years. Meanwhile, the company posted a strong 94% pretax margin in 2021 and 31% return on equity.
Boasting a lofty 94 IBD Composite Rating, backed by strong fundamental and technical metrics, Nexstar is the top-ranked stock in the media-radio/TV industry group, making it one of the top stocks to buy and watch.
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Stock To Watch: NXST Stock Eyes Latest Buy Point
Nexstar shares are approaching a 204.72 buy point in choppy cup base, according to IBD MarketSmith chart analysis. Shares of this stock to watch are about 2% away from the latest buy point after strong gains in recent weeks. It inched higher Tuesday midday, looking to rebound from Monday's 1.4% drop.
In recent weeks, the stock decisively reclaimed its key 50-day line. Meanwhile, the relative strength line is already at new highs, which is a bullish signal ahead of a potential breakout. The RS line measures a stock's price performance vs. the S&P 500.
Given fundamental and technical strength, Nexstar is one of the top stocks to buy and watch in the current market.
Other IBD 50 Stocks To Buy And Watch
These are three recent IBD 50 Stocks To Watch picks.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Cadence Design Systems | 177.37 | Consolidation | |
| Copa | 89.27 | Cup with handle | |
| Box | 32.10 | Flat base |
Source: IBD Data As Of Jan. 31, 2023
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on top stocks to buy and watch and the stock market.
