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4 Broadcast Radio & TV Stocks to Buy From a Prospering Industry
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The Zacks Broadcast Radio and Television industry has been grappling with an escalation in cord-cutting despite a surge in demand for streaming content. However, industry players such as Netflix (NFLX - Free Report) , Gray Media (GTN - Free Report) , Fox Corporation (FOXA - Free Report) and TEGNA (TGNA - Free Report) , are reaping the benefits of a massive spike in digital content consumption. These companies are thriving due to their diverse content offerings, which include original, regional, and short-form content tailored for small screens like smartphones and tablets. Improved Internet speed and penetration, coupled with technological advancements, have been advantageous for industry participants. As monetization and revenues from advertising spending continue to be modest, strategies focused on profit protection, cash management and greater technology integration have gained significance and are expected to aid these companies in driving top-line growth in the near term.
Industry Description
The Zacks Broadcast Radio and Television industry encompasses companies that provide entertainment, sports, news, non-fiction, and musical content across television, radio, and digital media platforms. These entities generate revenues through the sale of television and radio programs, advertising slots and subscriptions. With technological advancements and a growing demand for virtual reality and Internet radio, industry players are increasing their investments in research and development, as well as sales and marketing efforts, to remain competitive. The industry's focus is likely to shift toward sustaining current levels of operations, coupled with a renewed emphasis on flexibility. This approach would accelerate the transition to a variable cost model, thereby reducing fixed costs and enhancing agility in the face of evolving market dynamics.
4 Broadcast Radio and Television Industry Trends to Watch
Shift in Consumer Preference a Key Catalyst: To adapt to the evolving landscape, companies are diversifying their content offerings for over-the-top (OTT) services alongside traditional linear TV. The availability of streaming services across a wide range of platforms has enabled them to reach a global audience, expand their international user base and attract advertisers to their platforms, thereby boosting ad revenues. The utilization of services that aid advertisers in measuring their return on investment and enhancing use cases is expected to benefit industry participants. Major leagues and events, such as the NFL, NHL, Olympics, European Games, EPL and elections, also contribute significantly to ad revenue generation.
Increased Digital Viewing Fuels Content Demand: Many industry participants, either launching their own OTT services or acquiring existing ones, leverage user insights to deliver tailored content. The surge in digital viewing has made consumer data readily available, allowing companies to apply artificial intelligence (AI) and machine learning techniques to create or procure targeted content. This approach not only boosts user engagement but also enables industry players to raise the prices of their services at opportune moments without the fear of losing subscribers.
Uncertain Macroeconomic Landscape Impedes Production and Ad Demand: Advertising is a significant revenue source for the Broadcast Radio and Television industry. However, industry participants are grappling with the effects of persistently high inflation, rising interest rates, increased capital costs, a soaring U.S. dollar and the looming threat of a recession. These factors have prompted advertisers to trim their ad budgets, which is expected to impact the top-line growth of industry players in the near term. Moreover, intense competition for ad dollars from tech and social media companies has been a significant impediment to the growth of industry participants.
Low-Priced Skinny Bundles Impact Revenues: The surge in cord-cutting has compelled industry participants to offer "skinny bundles." These Internet-based services often contain fewer channels than traditional subscriptions and are, therefore, more affordable. This move aligns with changing consumer viewing dynamics, as growth in Internet penetration and advancements in mobile, video and wireless technologies have boosted small-screen viewing. While these alternative services are expected to keep users engaged with their platforms, increasing the need for additional content, the low-priced skinny bundles are likely to dampen the top-line performance of industry players.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Broadcast Radio and Television industry is housed within the broader Zacks Consumer Discretionary sector. It currently carries a Zacks Industry Rank #41, which places it in the top 17% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dismal near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries results from a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. Since April 30, 2024, the industry’s earnings estimates for 2025 have moved north by 9.3%.
Before we present some stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Beats Sector, S&P 500
The Zacks Broadcast Radio and Television industry has outperformed the broader Zacks Consumer Discretionary sector and the S&P 500 Index in the past year.
The industry has gained 54.4% over this period compared with the S&P 500’s growth of 2% and the broader sector’s appreciation of 1.5%.
One-Year Price Performance
Industry's Current Valuation
On the basis of trailing 12-month Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA), which is a commonly used multiple for valuing Broadcast Radio and Television stocks, the industry is currently trading at 15.35X versus the S&P 500’s 15.19X and the sector’s 9.47X.
In the past five years, the industry has traded as high as 21.6X and as low as 4.74X, recording a median of 9.99X, as the chart below shows.
EV/EBITDA Ratio (TTM)
4 Broadcast Radio and Television Stocks to Buy
Fox Corporation: This Zacks Rank #1 (Strong Buy) company presents a compelling investment opportunity in 2025, demonstrating impressive financial momentum with second-quarter FY2025 EBITDA more than doubling year over year to a record $781 million, driven by 20% revenue growth. The company is strategically positioned with its focused portfolio of high-demand sports and news content, yielding 6% affiliate revenue growth while subscriber declines improve for the second consecutive quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox News dominates with record audience share (over 60% of primetime cable news) and is attracting more than 100 new major national advertisers. The upcoming direct-to-consumer offering targeting cord-cutters, without requiring significant incremental rights costs, provides a new growth avenue. Tubi continues its strong trajectory with 31% ad revenue growth and will benefit from Super Bowl exposure. With skinny bundle inclusion strengthening distribution economics, robust advertising trends across its portfolio, and disciplined capital allocation returning $7.9 billion to shareholders, Fox offers exceptional value in the evolving media landscape.
The Zacks Consensus Estimate for fiscal 2025 earnings has increased 0.9% to $4.42 per share in the past 30 days. FOXA shares have declined 0.8% year to date.
Price and Consensus: FOXA
TEGNA: This Zacks Rank #1 company is successfully transforming operations through modernization, resource sharing, and technology deployment, targeting $90-$100 million in annualized savings by year-end. TEGNA's strong balance sheet with $693 million in cash and modest 2.7x leverage provides flexibility for both shareholder returns and potential M&A opportunities amid anticipated FCC deregulation.
The company's digital transformation is gaining traction with Premion's expanded CTV capabilities and high-profile sports partnerships driving revenue diversification. Strategic broadcast agreements like the expanded Indiana Fever partnership showcase TEGNA's ability to monetize live sports content. With established subscription revenue streams, strategic new leadership appointments, and robust political advertising cycles, TEGNA offers investors exposure to both traditional media stability and digital growth at an attractive valuation.
The Zacks Consensus Estimate for 2025 earnings has remained steady at $1.86 per share in the past 30 days. TGNA shares have declined 14.1% year to date.
Price and Consensus: TGNA
Netflix: Based on Netflix's first-quarter 2025 earnings report and future projections, the streaming giant presents a compelling investment opportunity. The company demonstrated robust growth with first-quarter revenues reaching $10.54 billion, up 12.5% year over year, and an impressive 54.8% jump in earnings to $6.61 per share. NFLX's subscriber base continues to expand, while its advertising tier now accounts for more than 55% of new sign-ups in available markets.
This Zacks Rank #2 (Buy) company has set an ambitious target to double its revenues by 2030 and reach a $1 trillion market capitalization, supported by a diversified content strategy, including international programming, live events, and gaming initiatives. With operating margins expanding to 31.7% and free cash flow of $2.66 billion, Netflix demonstrates strong financial discipline alongside growth. The 2025 content slate featuring returning hit shows like Squid Game, Wednesday and Stranger Things positions Netflix to maintain its leadership in the streaming wars.
The Zacks Consensus Estimate for 2025 earnings has moved north by 1% to $24.82 per share in the past 30 days. NFLX shares have returned 16.7% year to date.
Price and Consensus: NFLX
Gray Media: This Zacks Rank #2 company’s strategic initiatives are poised to deliver substantial shareholder value in the near term. The company has successfully expanded its local sports portfolio, securing partnerships with the Atlanta Braves, Minnesota Twins, and St. Louis Cardinals, bringing free over-the-air games to millions of households across its unmatched 113-market footprint. Beyond sports, Gray has demonstrated impressive financial discipline, reducing debt by $520 million in 2024 while maintaining strong cash flow.
GTN’s Assembly Atlanta studios are gaining momentum with successful broadcast shows like Grosse Pointe Garden Society and Beyond the Gates, while the company continues to expand digital distribution through Local News Live. With regulatory tailwinds expected from FCC ownership rule reforms, decreasing network affiliation fees, and innovative partnerships with organizations like the Military Basketball Association and Major League Pickleball, Gray Media is exceptionally positioned to capitalize on its market-leading stations and diversified revenue streams.
The Zacks Consensus Estimate for GTN’s 2025 loss has remained steady at 27 cents per share in the past 30 days. The stock has gained 3.5% year to date.
Price and Consensus: GTN
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4 Broadcast Radio & TV Stocks to Buy From a Prospering Industry
The Zacks Broadcast Radio and Television industry has been grappling with an escalation in cord-cutting despite a surge in demand for streaming content. However, industry players such as Netflix (NFLX - Free Report) , Gray Media (GTN - Free Report) , Fox Corporation (FOXA - Free Report) and TEGNA (TGNA - Free Report) , are reaping the benefits of a massive spike in digital content consumption. These companies are thriving due to their diverse content offerings, which include original, regional, and short-form content tailored for small screens like smartphones and tablets. Improved Internet speed and penetration, coupled with technological advancements, have been advantageous for industry participants. As monetization and revenues from advertising spending continue to be modest, strategies focused on profit protection, cash management and greater technology integration have gained significance and are expected to aid these companies in driving top-line growth in the near term.
Industry Description
The Zacks Broadcast Radio and Television industry encompasses companies that provide entertainment, sports, news, non-fiction, and musical content across television, radio, and digital media platforms. These entities generate revenues through the sale of television and radio programs, advertising slots and subscriptions. With technological advancements and a growing demand for virtual reality and Internet radio, industry players are increasing their investments in research and development, as well as sales and marketing efforts, to remain competitive. The industry's focus is likely to shift toward sustaining current levels of operations, coupled with a renewed emphasis on flexibility. This approach would accelerate the transition to a variable cost model, thereby reducing fixed costs and enhancing agility in the face of evolving market dynamics.
4 Broadcast Radio and Television Industry Trends to Watch
Shift in Consumer Preference a Key Catalyst: To adapt to the evolving landscape, companies are diversifying their content offerings for over-the-top (OTT) services alongside traditional linear TV. The availability of streaming services across a wide range of platforms has enabled them to reach a global audience, expand their international user base and attract advertisers to their platforms, thereby boosting ad revenues. The utilization of services that aid advertisers in measuring their return on investment and enhancing use cases is expected to benefit industry participants. Major leagues and events, such as the NFL, NHL, Olympics, European Games, EPL and elections, also contribute significantly to ad revenue generation.
Increased Digital Viewing Fuels Content Demand: Many industry participants, either launching their own OTT services or acquiring existing ones, leverage user insights to deliver tailored content. The surge in digital viewing has made consumer data readily available, allowing companies to apply artificial intelligence (AI) and machine learning techniques to create or procure targeted content. This approach not only boosts user engagement but also enables industry players to raise the prices of their services at opportune moments without the fear of losing subscribers.
Uncertain Macroeconomic Landscape Impedes Production and Ad Demand: Advertising is a significant revenue source for the Broadcast Radio and Television industry. However, industry participants are grappling with the effects of persistently high inflation, rising interest rates, increased capital costs, a soaring U.S. dollar and the looming threat of a recession. These factors have prompted advertisers to trim their ad budgets, which is expected to impact the top-line growth of industry players in the near term. Moreover, intense competition for ad dollars from tech and social media companies has been a significant impediment to the growth of industry participants.
Low-Priced Skinny Bundles Impact Revenues: The surge in cord-cutting has compelled industry participants to offer "skinny bundles." These Internet-based services often contain fewer channels than traditional subscriptions and are, therefore, more affordable. This move aligns with changing consumer viewing dynamics, as growth in Internet penetration and advancements in mobile, video and wireless technologies have boosted small-screen viewing. While these alternative services are expected to keep users engaged with their platforms, increasing the need for additional content, the low-priced skinny bundles are likely to dampen the top-line performance of industry players.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Broadcast Radio and Television industry is housed within the broader Zacks Consumer Discretionary sector. It currently carries a Zacks Industry Rank #41, which places it in the top 17% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dismal near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries results from a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. Since April 30, 2024, the industry’s earnings estimates for 2025 have moved north by 9.3%.
Before we present some stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Beats Sector, S&P 500
The Zacks Broadcast Radio and Television industry has outperformed the broader Zacks Consumer Discretionary sector and the S&P 500 Index in the past year.
The industry has gained 54.4% over this period compared with the S&P 500’s growth of 2% and the broader sector’s appreciation of 1.5%.
One-Year Price Performance
Industry's Current Valuation
On the basis of trailing 12-month Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA), which is a commonly used multiple for valuing Broadcast Radio and Television stocks, the industry is currently trading at 15.35X versus the S&P 500’s 15.19X and the sector’s 9.47X.
In the past five years, the industry has traded as high as 21.6X and as low as 4.74X, recording a median of 9.99X, as the chart below shows.
EV/EBITDA Ratio (TTM)
4 Broadcast Radio and Television Stocks to Buy
Fox Corporation: This Zacks Rank #1 (Strong Buy) company presents a compelling investment opportunity in 2025, demonstrating impressive financial momentum with second-quarter FY2025 EBITDA more than doubling year over year to a record $781 million, driven by 20% revenue growth. The company is strategically positioned with its focused portfolio of high-demand sports and news content, yielding 6% affiliate revenue growth while subscriber declines improve for the second consecutive quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox News dominates with record audience share (over 60% of primetime cable news) and is attracting more than 100 new major national advertisers. The upcoming direct-to-consumer offering targeting cord-cutters, without requiring significant incremental rights costs, provides a new growth avenue. Tubi continues its strong trajectory with 31% ad revenue growth and will benefit from Super Bowl exposure. With skinny bundle inclusion strengthening distribution economics, robust advertising trends across its portfolio, and disciplined capital allocation returning $7.9 billion to shareholders, Fox offers exceptional value in the evolving media landscape.
The Zacks Consensus Estimate for fiscal 2025 earnings has increased 0.9% to $4.42 per share in the past 30 days. FOXA shares have declined 0.8% year to date.
Price and Consensus: FOXA
TEGNA: This Zacks Rank #1 company is successfully transforming operations through modernization, resource sharing, and technology deployment, targeting $90-$100 million in annualized savings by year-end. TEGNA's strong balance sheet with $693 million in cash and modest 2.7x leverage provides flexibility for both shareholder returns and potential M&A opportunities amid anticipated FCC deregulation.
The company's digital transformation is gaining traction with Premion's expanded CTV capabilities and high-profile sports partnerships driving revenue diversification. Strategic broadcast agreements like the expanded Indiana Fever partnership showcase TEGNA's ability to monetize live sports content. With established subscription revenue streams, strategic new leadership appointments, and robust political advertising cycles, TEGNA offers investors exposure to both traditional media stability and digital growth at an attractive valuation.
The Zacks Consensus Estimate for 2025 earnings has remained steady at $1.86 per share in the past 30 days. TGNA shares have declined 14.1% year to date.
Price and Consensus: TGNA
Netflix: Based on Netflix's first-quarter 2025 earnings report and future projections, the streaming giant presents a compelling investment opportunity. The company demonstrated robust growth with first-quarter revenues reaching $10.54 billion, up 12.5% year over year, and an impressive 54.8% jump in earnings to $6.61 per share. NFLX's subscriber base continues to expand, while its advertising tier now accounts for more than 55% of new sign-ups in available markets.
This Zacks Rank #2 (Buy) company has set an ambitious target to double its revenues by 2030 and reach a $1 trillion market capitalization, supported by a diversified content strategy, including international programming, live events, and gaming initiatives. With operating margins expanding to 31.7% and free cash flow of $2.66 billion, Netflix demonstrates strong financial discipline alongside growth. The 2025 content slate featuring returning hit shows like Squid Game, Wednesday and Stranger Things positions Netflix to maintain its leadership in the streaming wars.
The Zacks Consensus Estimate for 2025 earnings has moved north by 1% to $24.82 per share in the past 30 days. NFLX shares have returned 16.7% year to date.
Price and Consensus: NFLX
Gray Media: This Zacks Rank #2 company’s strategic initiatives are poised to deliver substantial shareholder value in the near term. The company has successfully expanded its local sports portfolio, securing partnerships with the Atlanta Braves, Minnesota Twins, and St. Louis Cardinals, bringing free over-the-air games to millions of households across its unmatched 113-market footprint. Beyond sports, Gray has demonstrated impressive financial discipline, reducing debt by $520 million in 2024 while maintaining strong cash flow.
GTN’s Assembly Atlanta studios are gaining momentum with successful broadcast shows like Grosse Pointe Garden Society and Beyond the Gates, while the company continues to expand digital distribution through Local News Live. With regulatory tailwinds expected from FCC ownership rule reforms, decreasing network affiliation fees, and innovative partnerships with organizations like the Military Basketball Association and Major League Pickleball, Gray Media is exceptionally positioned to capitalize on its market-leading stations and diversified revenue streams.
The Zacks Consensus Estimate for GTN’s 2025 loss has remained steady at 27 cents per share in the past 30 days. The stock has gained 3.5% year to date.
Price and Consensus: GTN