In the evolving media landscape, where conventional outlets transition to digital channels, savvy investors are seeking opportunities in well-established media stocks. Despite the recent decline in Trump Media & Technology Group (TMTG), resulting in over 50% loss from its 52-week high, substantial losses reported for 2023, and further decline following the filing to issue additional shares, analysts recommend exploring legacy media stocks that demonstrate resilience in the digital era.
One such stock is the New York Times (NYT), a household name with significant impact in media. Its focus on digital sales positions it for future growth. With 10.36 million subscribers at the end of 2023, including 9.7 million digital-only subscribers, the company has set an ambitious goal of reaching 15 million by 2027. Its continuous improvement in digital products and unique monetization strategies contribute to its projected 13% upside potential.
Another media company worth considering is Nexstar Media Group (NXST). Despite challenges such as rising interest rates, insider selling, and regulatory hurdles, the company has consistently exceeded earnings expectations. Its strategic content approach and partnerships with popular media platforms enhance its programming lineup. While the stock has experienced a 19% rally in the past six months, analysts project a 21% upside potential with a price target of $200.
Finally, Comcast (CMCSA) is a media giant undergoing significant changes. The company’s recent layoffs in its Sky division reflect the trend towards streaming services. However, Comcast’s commitment to dividend growth, with 17 consecutive years of hikes, and its revised business model focused on internet streaming indicate its adaptability to evolving industry dynamics. Analysts predict a 26% upside potential with a price target of $50.
