Nexstar Media Group (NXST): Assessing Valuation After a Strong Year-to-Date Share Price Gain

Nexstar Media Group (NXST) shares are drawing interest as investors review the company’s recent performance and longer-term returns. With a strong presence in the US media landscape, many are weighing how its growth numbers impact current valuation.

See our latest analysis for Nexstar Media Group.

This year, Nexstar Media Group's stock has steadily picked up momentum, with a 22.5% year-to-date share price return signaling growing optimism among investors. Over the past year, total shareholder return comes in at 15.7%, and its impressive five-year total shareholder return of 163.4% stands out despite the ebb and flow of media sector sentiment.

If Nexstar’s run has you thinking more broadly about what else to watch, now could be an ideal time to discover fast growing stocks with high insider ownership

But with shares up so strongly, the key question remains: is Nexstar Media Group undervalued relative to its fundamentals, or is all that future growth expectation already baked into the price? Could there still be a real buying opportunity?

Most Popular Narrative: 15.8% Undervalued

With Nexstar Media Group closing at $195.18 and the most popular analyst narrative setting fair value at $231.89, the stock screens as a notable bargain. Let's unpack why this consensus puts a premium on Nexstar’s future, directly from the source:

“Sustained trust in local news and increasing public concern over misinformation are driving strong, dependable viewership of Nexstar's local and national news programming. This is positioning the company to benefit from a secular shift in advertising dollars toward trusted local content, directly supporting stable or growing advertising revenue and margin resilience.”

Read the complete narrative.

Curious what earnings and margin changes justify a price so far above today's? Analysts here are betting on a pattern of resilience and a profit model that most media rivals can only dream about. Want to see the specific financial leaps behind that value? Don’t miss the full narrative for all the critical forecasts and surprises.

Result: Fair Value of $231.89 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent declines in linear TV audiences, along with dependence on political ad cycles, could disrupt Nexstar’s stable earnings and long-term outlook.

Find out about the key risks to this Nexstar Media Group narrative.

Build Your Own Nexstar Media Group Narrative

If you’d rather take a hands-on approach or want to map out your own take, you can craft a custom narrative in just a few minutes. Do it your way

A great starting point for your Nexstar Media Group research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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