Top ranked TV station owner Nexstar Media continues to outperform others in its sector and more funds are add it to their portfolios. On Tuesday, Nexstar stock's Relative Strength (RS) Rating shot up to 89, from 79 the day before.
Nexstar Stock Rises Into Top-Performers Group
The new 89 RS Rating means that Nexstar stock topped 89% of stocks over the past year on price performance. Market research shows that the best-performing stocks typically have an RS Rating north of 80 as they launch their biggest price moves. Nexstar stock just cleared that benchmark with ease.
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Nexstar Media is trying to complete a consolidation with a 192.94 entry. See if the stock can break out in volume at least 40% higher than normal. Nexstar stock was up about 0.5% Tuesday afternoon, at 167.79. On March 25 it hit an all-time intraday high at 192.84 despite the bear market, a sign of strength.
Among its other key ratings, Nexstar has a 90 EPS Rating, of 99, putting it in the top 10% of stocks for recent quarters and years profit growth. The Irving, Texas-based company's C+ Accumulation/Distribution Rating, on an A+ to E scale, means institutional investors such as mutual funds and ETFs are buying more Nexstar stock than selling, a bullish indicator.
And Nexstar stock's 96 Composite Rating is outstanding. The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better.
Additionally, the number of top-rated mutual funds that own its shares climbed from 717 last September to 787 in March, the last quarter for which figures are available.
Nexstar Media saw both earnings and sales growth rise last quarter. Earnings per share grew 36% to $5.99. Revenue rose 9% to $1.21 billion. However, Nexstar's growth has been sporadic. The prior quarter its earnings and sales dipped from a year earlier, while in Q4 2021 its reported a 112% surge in earnings on 24% higher sales.
No. 1 Ranked In Its Group
Nexstar stock holds the No. 1 rank among its peers in the Media-Radio/TV industry group. Tegna and Saga Communications are also in the top five in the group.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique RS Rating tracks technical performance by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
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