Beverly Hills, California-based Live Nation Entertainment, Inc. (LYV) is a live entertainment company that owns, operates, and has exclusive booking rights for or has an equity interest in venues like House of Blues music and prestigious locations such as The Fillmore in San Francisco, Brooklyn Bowl, and the Hollywood Palladium to name a few. The company is valued at a market cap of $31.6 billion.
Companies worth $10 billion or more are generally described as “large-cap” stocks, and LYV fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, stability, and influence in the entertainment industry. The company organizes thousands of events annually across multiple countries and distinguishes itself as a global leader in live events and ticketing.
LYV is currently trading 3.7% below its 52-week high of $141.18, reached on Nov. 25. Shares of this venue operator soared 37.5% over the past three months, significantly outperforming the broader Dow Jones Industrials Average’s ($DOWI) 5.9% returns during the same time frame.
Moreover, in the longer term, LYV has rallied 54.4% over the past 52 weeks, significantly outpacing DOWI’s 18.2% returns. On a YTD basis, shares of LYV have gained nearly 45.3%, massively surpassing DOWI’s 16.3% gains over the same time frame.
To confirm its bullish trend, LYV has been trading above its 200-day and 50-day moving average since early September.
On Nov. 11, LYV released its Q3 earnings results, and shares of LYV closed up 4.8% on the following day despite delivering a weaker-than-expected revenue of $7.65 billion, which declined 6.1% from the year-ago figure. However, the company reported EPS of $1.66 and adjusted operating profit of $910 million, which easily surpassed the consensus estimates. Moreover, the company’s strong growth outlook, driven by a record-breaking show pipeline, growing concerts pipeline in large venues, and accelerating brand sponsorships, might have further bolstered investor confidence.
LYV’s outperformance becomes more evident when compared to its rival, Madison Square Garden Sports Corp. (MSGS), which gained 37.2% over the past 52 weeks and 29.3% on a YTD basis.
Looking at Live Nation Entertainment’s recent outperformance, analysts remain strongly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 19 analysts covering it, and the mean price target of $149.11 suggests a modest 9.7% premium to its current levels.
