NXST Stock: No. 1 Play on Massive Online Ad Trend

When I was a kid, if an advertiser wanted to get your attention, he used TV, radio or newspapers.

Those days are long gone when marketers switched to digital means to reach customers. (Think of the common ads everywhere on mobile sites and apps.)

Expenditure on digital advertising continues to break records, as can be seen in the bar chart below:

Spending on digital ads jumped 15% during the COVID-19 epidemic as marketers took advantage of the appeal to people left at home.

But the trend does not stop – on the contrary! Analysts estimate US spending on digital ads to reach $ 278.5 billion by 2024 – An increase of 82% compared to 2020.

Meanwhile, global spending on digital ads will reach $ 526.1 billion. That means the US will be taken into account 53% Of global digital advertising.

Companies with a strong digital presence will see huge numbers in the coming years … and smart investors will see big profits.

Today’s power stock is Nexstar Media Group Inc. (NASDAQ: NXST).

NXST stock rating in April 2022.

Nexstar provides additional sales, programming and services to 37 TV stations. It owns and operates another 198. It also offers advertising platforms through third-party and third-party websites.

NXST wins “Strong Bulls” rating 91 out of 100 On our stock power rating system, and we expect it to beat the broad market 3 times in the next 12 months.

NXST Stock: Strong momentum and growth in online ad space

In my research on NXST, two points impressed me:

  • In January 2022, NXST’s digital arm increased its unique number of visitors year-on-year by 45%. Its websites and apps now Reach 48% of the digital audience in the US.
  • These users have created 820 million page views On all platforms.

It’s easy to think of NXST as a TV company and nothing more, but to be honest, it’s short-sighted.

I see this as a digital advertiser – one with excellent growth. Its three-year sales growth rate is 19%, and the three-year earnings per share growth rate is 32.2%.

In the competitive world of digital advertising, NXST takes advantage of its online presence and expanding applications by Generate profits from users.

NXST Stock Chart

Created in April 2022.

You can see it in the stock chart above NXST jumped 30% in the last year. Even though she has stepped back, she is still hurting pants from her media and advertising peer colleagues.

I’m not worried about the stock’s recent downward movement. We can attribute this to a broader counter-spirit in the market.

Nexstar Stock Score a 91 in total.

That means we are “strong bulls” and expect it to beat the broad market At least three times in the next 12 months.

The stock tops all stocks except for 6% of the stocks we rank in growth. The impressive monetization of the unique and current users of its websites drives its growth mark of 94.

Bonus: In addition to strong momentum and growth, NXST includes a 2.09% forward dividend yield. That means the company will do it Pay you $ 3.60 a share a year – Just to hold the stock.

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Safe Trading,

Matt Clark, CMSA®
Researcher, Money and Markets Analyst

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