Media stocks tend to do well when elections take place. Television stations benefit from political ad revenue as various political parties go into overdrive trying to appeal to the masses. Something similar happened last year when the US presidential elections played out. The largest media company, Nexstar Media, saw significant jumps (3-digit percentage growth year on year) in its financials as it raked in political ad revenue. However, if you are an investor who is bullish on the industry and are looking for media stocks to buy in 2021, then Nexstar Media is one of the most dominant players in the sector. Nexstar is best-known as the company that has close to 200 television stations under its control. However, the company has also invested in the digital side of the business with its Nexstar Digital platform.
Nexstar Second-Quarter 2021 Earnings Results
On 4th August 2021, Nexstar Media reported its Q22021 earnings results. As expected, political revenue dropped significantly from $21.5 million in Q22020 to $8.5 million. Total advertising revenue, however, rose from $319 million in Q22020 to $431 million. So, the overall dynamics of the market remained strong for Nexstar. Total revenue for the company rose from $914 million in Q22020 to $1.1 billion in Q22021. Net income also jumped significantly from $98 million to $199 million. Management attributed the strong financial numbers to the success of Nexstar in being able to monetize its local content. Many of Nexstar’s 199 television stations are local networks focused on smaller geographic regions within the US. Nexstar Media has a 31% stake in a top-tier cable asset called TV Food Network. If you discuss the best communication stocks of 2021, then Nexstar Media might make the list.
Media Stocks To Buy In 2021
In June 2021, Nexstar Media celebrated its 25th anniversary. In a relatively short period of 25 years, the business has grown significantly to become a top media company in the US. The future focus of the company is to continue delivering strong programming content while also further developing its digital business.