Nexstar Media Group, Inc. (NXST)

Nexstar is the largest television station owner in the US with 197 stations in 115 markets. It stations are affiliated with well-known national broadcasters like CBS, Fox, NBC, and ABC. Nexstar also owns WGN and has a 31% stake in Food Network and Cooking Channel. The company’s scale allows it to attract national advertising campaigns. The company also earns retransmission fees which have been trending up. These fees include the fee that digital platforms pay to transmit Nexstar’s programs. The company’s scale and reach make it a bright long-term prospect.

The Long term monthly chart for Nexstar shows a consistent uptrend that peaked in May 2019 and February 2020. March was an unprecedented month for the stock as the price fell by 62% in just a few weeks. The price broke a support level at 90 as well as the bottom of the long-term trend. However, starting April, the stock has risen 77% from its lows and has gone back above the 90 support level. The price looks set to retest the 2020 highs of 120-130. A stop loss can be placed at around 82, below the bottom of the long-term trend.

Position taken today at $94.57 with a stop loss 22.32% below. Medium term take profits set at $129 giving a return of 36%.