RBR/TVBR – Nexstar: A Top 5 Performer In Wall Street’s ‘Bull Run’

By Adam Jacobson

On Saturday, the 10th anniversary of the longest bull market in Wall Street history will be remembered by many in the financial world. Among them is Markets Insider reporter Ethel Jiang, who finds that the S&P 500 has more than quadrupled in value since March 9, 2009 — the height of the Great Recession.

Five companies saw their share prices “stretch hundredfold” during the Bull Market, based on TradeStation data reviewed by Jiang. One of those companies is Nexstar Media Group.

With financial markets “extremely oversold” a decade ago, in the eyes of TradeStation VP David Russellthe financial market seems to be rolling along despite some troubling events: Greece’s default on an IMF loan payment, the United Kingdom’s Brexit vote, and the Federal Reserve’s interest-rate hikes — in addition to a weak jobs report released Friday (3/8) by the U.S. government suggesting that the global economy is slowing.

That last bit of new intelligence didn’t exactly send markets tumbling. In midday trading on Friday, the Dow Jones Industrial Average was down 125.45 points, to 25,347.78. Nasdaq was off 56.10 to 7,365.37.

One TV companies was noticeably up again: Nexstar. At 12:17pm Eastern, NXST was trading at $102.77, a 67-cent improvement from Thursday’s closing price.

Nexstar is on fire as of late, and for long-term investors the windfall is dramatic.

In fact, Nexstar is, according to TradeStation, the third-biggest winner during the stock market’s bull run, behind Ulta Beauty and Exact Sciencesthe maker of colorectal cancer prevention test Cologuard.

Nexstar’s 10-year performance: +15,600%.

“Another penny-stock-turned high flier,” Russell noted. “The Texas telecom company is a classic example of media consolidation done right. In addition to successfully realizing synergies from the purchases of firms like Media General and Communications Corp. of America, Nexstar has also benefited from increased political broadcasting. Many of the big losers listed below were dragged down by debt, but Nexstar is an example of leverage used the right way.”

Nexstar carries a 1-year Target Estimate of $113.55.

Note: This story originally appeared in Radio + Television Business Report on March 8, 2019.

 

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