Top 14 Broadcasting Stocks That Could Still Outperform the Market
What’s a broadcaster?
It used to be a TV network, plain and simple, but nowadays it’s a telco or media giant with tentacles reaching into the internet, cell phones, cable TV and, increasingly, streaming services.
In Canada, the three telcos enjoy an oligopoly by charging some of the highest data and phone rates in the world, which pay shareholders safe dividends.
An expected interest rate will be another tailwind.
Across the border, Disney has entered the streaming business with Disney+ that may or may not take away business from Netflix. Meanwhile, more traditional broadcasters, such as ATN here (SAT-X) or Grupo Televisa (TV-N) in America and Mexico, serve niche markets.
Here’s a list of the top broadcasting stocks:
An overlooked Canadian success story, Evertz, upgrades broadcasting equipment across North America. They are the leader in this space, and are expanding their presence.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EPS of 20c missed estimates of 22.5c. Sales of $125.8M beat estimates of $120.5M. Sales and earnings rose nicely. Cash is now $27M. It was a decent quarter, but there has been no long-term growth here. Even with a bounce this year, EPS will be…
It’s no secret that Corus has been struggling, then last month Shaw sold its $548 million stake. Some say this now is a buying opportunity, while others stay on the sidelines.
Since last summer there has been a recession in advertising for television and this has been a problem for Chorus. There are longer term headwinds since subscribers are moving more to streaming services. Chorus has STACK TV but it is an uphill battle against some of the big companies. It sold its animation studio to…
Based in Markham, ATN broadcasts to the South Asian-Canadian community in languages including Hindi and Bengali. This demographic is large and wealthy, but ATN contends with piracy of South Asian content. That said, ATN is profitable and generates decent cash flow.
They have a fair bit of cash in the bank. Being a smaller company it suffers more from pirated content on the Internet. It was a really well run company. They had a lot of cash in the bank.
Telus has forecast its annual dividend growth rate of 7-10% for the next three years as its payout ratio declines. All this as the big three slash unlimited broadband rates in a battle to win customers.
It is at a good valuation now, being near its low. Has a solid dividend and dividend growth rate. In general telecom stocks are down and there are competition concerns for the sector but this should not be a major concern.
Rogers shot the opening salvo in the current data-plan war among Canadian telcos. A Toronto Raptors’ championship won’t hurt Rogers’ bottom line, but Rogers trails its peers in laying 5G fiber-optic to the home.
It has good penetration into the New Canadian population which is leading to explosive population growth. There has been a lot of noise over the SHAW acquisition but it looks like the integration of the acquisition is going well. It sits at an attractive valuation. Buy 15 Hold 3 Sell 1 (Analysts’ price target…
A dominant player in this space that’s long enjoyed growth, but how much growth is left? At least the 5% dividend yield is safe, which is why many investors buy this stock.
(A Top Pick Sep 20/22, Down 6%) Chosen for defensive income. All telecoms have faced headwinds from interest rates, regulatory concerns, and increased competition. No one's gone super price-competitive yet. Immigration a positive. Capital spending on fibre should trend down next couple of years. Happy to hold. Yield just over 7%.
It’s enjoyed a superb run since 2015 and many analysts expect more growth to come, but their operations are limited to Quebec.
Good value, whole sector's been in a funk. Got a good price for Freedom Mobile. Good operators. Better growth potential, as they can now operate outside of Quebec. Wants to see capex plans for Western expansion before adding to his position.
The U.S. Justice Department originally challenged AT&T’s takeover 12 months ago, but to the surprise of some eventually approved the deal. Now, the entertainment giant is even bigger as WarnerMedia. The company operates in film, TV, cable and publishing, including HBO and the Turner Broadcasting System.
(A Top Pick Jan 30/18, Up 5%) He bought this back believing the AT&T merger would go through--and it did. It worked out for him.
The world’s largest teleco, Comcast penetrates nearly half of all Amerian households. All eyes are on Comcast’s $39 billion takeover of U.K. broadcaster, Sky.
Gets no respect, as it's seen as cable/TV, a dying business. Has 6 growth businesses: broadband for residential and business, wireless, theme parks, streaming, and studios. Together, those are growing about 10% a year, and will be 75% of the business over the next few years. Anemic 11x, growth of 10%. Defensive, still room to…
Gray is a broadcaster based in Atlanta that operates in over 90 small- and mid-sized American markets. It continues to expand.
(A Top Pick Mar 25/21, Up 13.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with GTN has triggered its stop at $21. To remain disciplined, we recommend covering the position at this time.
Based in Colorado, this direct-broadcast satellite player owns Dish Network. It doesn’t pay a dividend, but the stock just came off its 52-week high.
One of the biggest announcements this spring was the long-awaited announcement of Disney+, a new streaming service that’s expect to compete with Netflix. Or will it complement the streamer by reaching a younger audience? Regardless, this is definitely a stock to watch.
Has owned shares in the past, but not right now.Company less attractive than in the past.Expensive business costs with inability to generate growing cash flow.Re-investment into theme park business will be beneficial.Concerned about long term prospects for company.Current share price too high to justify investment.
This Ottawa software company helps service providers launch next-generation video offerings. It’s partnered with the likes of Netflix, Amazon and Google. Despite a good balance sheet, Espial’s operations have been quiet lately.
They haven't won many contracts lately. They had signed a deal with Rogers to make them look like Apple TV and more user-friendly, but lost that contract, then signed a few new contracts, but those revenues haven't come to fruition. He still holds it thought it's been going down. There's lot of cash on the…
A Mexican multimedia company, Grupo is the second-largest broadcaster in Hispanic America as well as the first of all the Spanish-speaking world. Much of its programming airs in the U.S.
(A Top Pick Jan 7/13. Up 4.33%.) When it became apparent the developing markets were behaving a little bit more poorly, he exited his position at about $30. Great company and ultimately it is in the right group but he prefers to focus on more US domestic companies.