10 Best Stocks to Buy According to John W. Rogers of Ariel Investments

2. Madison Square Garden Entertainment Corp. (NYSE:MSGE)

Ariel Investments’ Stake as of Q4: $270.7 million

Number of Hedge Fund Holders: 46

Madison Square Garden Entertainment Corp. (NYSE:MSGE), a spinoff of Sphere Entertainment Co., is a live entertainment company that organizes concerts and event entertainment experiences at well-known venues like Radio City Music Hall and Madison Square Garden.

On March 12, Wolfe Research raised Madison Square Garden Entertainment Corp. (NYSE:MSGE) to Outperform from Peer Perform, noting the stock’s undervaluation and solid growth potential in the live entertainment industry. The firm also set a price target of $46, citing increased revenues from the Radio City Christmas Spectacular and consistent demand at Madison Square Garden. Furthermore, with MSGE working on a six- to nine-month booking cycle, the company is projected to give insight into its 2026 event pipeline by this summer, which could increase investor confidence in its future earnings.

In its 91st holiday season, Madison Square Garden Entertainment Corp. (NYSE:MSGE) sold roughly 1.1 million tickets to 200 shows, compared to over 1 million tickets sold to 193 shows the previous season. Revenue from entertainment offerings remained firm year-over-year at $318.28 million, owing primarily to reduced event-related revenues, which were significantly offset by increased revenues from the Christmas Spectacular production. In addition, food, beverage, and merchandise revenues rose 1% year-over-year to $59.3 million due to more Knicks and Rangers games at The Garden and more Christmas Spectacular performances.