14 Best Broadcasting Stocks To Buy

In this article, we discuss 14 best broadcasting stocks to buy.

According to The Business Research Company, the projected size of the global TV and radio broadcasting market was set to increase from $374.55 billion in 2021 to $401.25 billion in 2022, representing a compound annual growth rate (CAGR) of 7.1%. This growth can be attributed to companies reorganizing their operations and recovering from the impact of the COVID-19 pandemic. The pandemic had necessitated measures such as social distancing, remote work, and the temporary closure of commercial activities, resulting in operational challenges for the industry. The market is further expected to expand to $504.00 billion by 2026, growing at a CAGR of 5.9% during the forecast period.

As per a Reuters Institute report dated January 10, broadcasters are encountering growing challenges as audiences for linear news bulletins and opinion programming decline rapidly across all age groups. This situation is exacerbated by the fact that most commercial TV and radio providers heavily rely on advertising or carriage fees for revenue, with limited direct income from viewers or listeners. Additionally, the decision by Netflix, Inc. (NASDAQ:NFLX) to introduce advertisements adds to the pressure on broadcasters. Moreover, public broadcasters are experiencing funding cuts and facing heightened criticism from politicians and competitors in the publishing industry. The failure of CNN+ in the previous year indicated a limited outlook for independent linear news subscriptions. However, Reuters anticipates an increase in efforts to combine on-demand and live news within streaming services. Public broadcasters like the BBC have begun to suggest the possibility of discontinuing TV and radio transmissions over the next decade as consumers increasingly shift towards using apps and websites for their media consumption.

Media companies, regardless of their size, are starting to recognize the extensive possibilities offered by cloud technology in the realms of broadcast and streaming, according to BroadcastPRO ME. While cloud and hybrid environments have been a focus for forward-thinking media technology providers for a while, they are now gradually entering the mainstream for video production and distribution in 2023. The cloud has become an essential component of product strategies and a means to unlock new revenue streams in the media industry. Venugopal Iyengar, Deputy COO Digital at Planetcast International, told BroadcastPRO ME on January 18: 

“Taking learnings from the past couple of years and looking to 2023, broadcasters of all shapes and sizes have become acutely aware of the need for reliable disaster recovery systems. Cloud-based DR models are democratizing access to playout disaster recovery for the global media market. Facility- and location-agnostic virtualized disaster recovery offers a more flexible and commercially viable alternative to traditional monolithic DR models based on a full active/active on-premise set-up.”

Some of the best broadcasting stocks to invest in include Warner Bros. Discovery, Inc. (NASDAQ:WBD), Comcast Corporation (NASDAQ:CMCSA), and Paramount Global (NASDAQ:PARA). 

Our Methodology 

We scanned Insider Monkey’s database of 943 hedge funds and picked the top 14 companies that operate in the broadcasting sector with the highest number of hedge fund investors. These are the best broadcasting stocks to buy according to hedge funds.

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Best Broadcasting Stocks to Buy

14. Cumulus Media Inc. (NASDAQ:CMLS)

Number of Hedge Fund Holders: 13

Cumulus Media Inc. (NASDAQ:CMLS) is a media company that primarily focuses on audio content. It possesses and manages a range of radio stations across the United States. The company’s content offerings encompass a diverse array of subjects such as sports, news, talk shows, and entertainment. These programs are sourced from a variety of well-known brands, including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and various other partners. It is one of the best broadcasting stocks to invest in. 

On April 27, Cumulus Media Inc. (NASDAQ:CMLS) reported its Q1 2023 results. The company posted a Q1 GAAP EPS of -$1.17 and a revenue of $205.7 million, outperforming Wall Street estimates by $0.01 and $2.77 million, respectively. The recorded amount of debt on March 31, 2023, was $713.1 million, while the net debt stood at $594.2 million. These figures represent the lowest levels observed in over ten years.

After reviewing the Q1 report, B. Riley revised Cumulus Media Inc. (NASDAQ:CMLS)’s price target to $10 from $16. However, the firm maintained a Buy rating on the shares on April 28. B. Riley stated that the decline in national radio ad expenditure has intensified compared to the previous update in late February.

According to Insider Monkey’s fourth quarter database, 13 hedge funds were bullish on Cumulus Media Inc. (NASDAQ:CMLS), compared to 14 funds in the prior quarter. Beach Point Capital Management is the largest stakeholder of the company, with 596,769 shares worth $3.70 million. 

In addition to Warner Bros. Discovery, Inc. (NASDAQ:WBD), Comcast Corporation (NASDAQ:CMCSA), and Paramount Global (NASDAQ:PARA), Cumulus Media Inc. (NASDAQ:CMLS) is one of the best broadcasting stocks to invest in. 

13. Sinclair Broadcast Group, Inc. (NASDAQ:SBGI)

Number of Hedge Fund Holders: 18

Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) is a media company in the United States that operates local television stations. They broadcast a variety of programming, including network shows, local news, sports events, syndicated entertainment, and internally produced content. Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) also owns digital media products and provides programming, operating services, sales services, and other non-programming services through its broadcasting stations in different markets. It is one of the best broadcasting stocks to watch.

On April 18, Benjamin Soff, an analyst at Deutsche Bank, increased the price target for Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) from $21 to $22 while maintaining a Hold rating on the shares. The analyst believes that the company is making positive progress and heading in the right direction.

According to Insider Monkey’s fourth quarter database, 18 hedge funds were long Sinclair Broadcast Group, Inc. (NASDAQ:SBGI), compared to 21 funds in the prior quarter. Mario Gabelli’s GAMCO Investors is the largest position holder in the company. 

12. AMC Networks Inc. (NASDAQ:AMCX)

Number of Hedge Fund Holders: 20

AMC Networks Inc. (NASDAQ:AMCX) is an American entertainment company that operates several television channels and streaming platforms. AMC Networks Inc. (NASDAQ:AMCX) owns and operates several popular television channels, including AMC, BBC America, IFC, SundanceTV, and WE tv. These channels offer a variety of content, including news, movies, TV shows, and original series. It is one of the best broadcasting stocks to invest in. On February 17, the company reported a Q4 non-GAAP EPS of $2.52 and a revenue of $964.52 million, outperforming Wall Street estimates by $1.25 and $27.45 million, respectively.

On February 21, Morgan Stanley analyst Thomas Yeh raised the firm’s price target on AMC Networks Inc. (NASDAQ:AMCX) to $24 from $19 and reiterated an Equal Weight rating on the shares. AMC Networks Inc. (NASDAQ:AMCX)’s decision to reduce its spending on cash content to approximately $1-1.1 billion in FY23 and beyond has positively impacted the firm’s projections for free cash flow. However, there is a potential risk of lower investments in content leading to increased challenges in generating revenue, according to the analyst’s note to investors.

According to Insider Monkey’s fourth quarter database, 20 hedge funds were bullish on AMC Networks Inc. (NASDAQ:AMCX), compared to 16 funds in the prior quarter. Cliff Asness’ AQR Capital Management is the biggest stakeholder of the company.

Here is what ClearBridge Investments has to say about AMC Networks Inc. (NASDAQ:AMCX) in its Q1 2021 investor letter:

“Media has been another bright spot for the Strategy, boosted by the return of live events and subsequent rebound in advertising as well as good initial traction for several of our companies new streaming services. AMC Networks has seen strong initial subscriber growth to their over-the-top services.”

11. Gray Television, Inc. (NYSE:GTN)

Number of Hedge Fund Holders: 23

Gray Television, Inc. (NYSE:GTN) is a television broadcasting company that possesses and manages television stations and digital assets within the United States. The company broadcasts additional digital channels associated with major networks like ABC, CBS, NBC, and FOX, as well as various other networks and program services such as CW Plus Network, MY Network, the MeTV Network, Circle, Antenna TV, Telemundo, and Cozi. Additionally, Gray Television, Inc. (NYSE:GTN) operates local news and weather channels in different markets. It is one of the premier broadcasting stocks to monitor. 

On November 10, Barrington analyst James Goss maintained an Outperform rating on Gray Television, Inc. (NYSE:GTN) but lowered the firm’s price target on the shares to $15 from $25.

According to Insider Monkey’s fourth quarter database, 23 hedge funds were bullish on Gray Television, Inc. (NYSE:GTN), compared to 29 funds in the prior quarter. Anand Desai’s Darsana Capital Partners is the largest stakeholder of the company, with 4.6 million shares worth $51.3 million. 

10. Sirius XM Holdings Inc. (NASDAQ:SIRI)

Number of Hedge Fund Holders: 26

Sirius XM Holdings Inc. (NASDAQ:SIRI) is an American broadcasting company that specializes in satellite radio services. SiriusXM offers a wide range of commercial-free music, sports, news, talk, and entertainment channels via satellite and online streaming. It provides subscription-based services to millions of subscribers in the United States and Canada. It is one of the best broadcasting stocks to monitor. On April 19, Sirius XM Holdings Inc. (NASDAQ:SIRI) declared a $0.0242 per share quarterly dividend, in line with previous. The dividend is payable on May 24, to shareholders of record on May 5.

On April 27, Pivotal Research maintained a Hold rating on Sirius XM Holdings Inc. (NASDAQ:SIRI) but reduced its price target on the shares from $5 to $4. According to the firm’s research note to investors, Sirius XM Holdings Inc. (NASDAQ:SIRI)’s Q1 results were described as “mixed,” with self-pay subscriber losses worse than anticipated and moderately higher churn than forecasted. However, Pivotal Research believes that the outlook for shares is more favorable in 2024. This is due to Sirius XM’s expectation of overcoming one-time expenses in 2023, benefiting from digital investments, and the normalization of car production, which will likely have a positive impact on the company.

According to Insider Monkey’s fourth quarter database, 26 hedge funds were long Sirius XM Holdings Inc. (NASDAQ:SIRI), compared to 24 funds in the earlier quarter. Stuart J. Zimmer’s Zimmer Partners is a prominent stakeholder of the company.

9. iHeartMedia, Inc. (NASDAQ:IHRT)

Number of Hedge Fund Holders: 27

iHeartMedia, Inc. (NASDAQ:IHRT) is a media and entertainment company that operates in three main segments – Multiplatform Group, Digital Audio Group, and Audio & Media Services Group. The Multiplatform Group segment focuses on broadcast radio stations, sponsorship opportunities, and live/virtual events. It also operates Premiere Networks, a national radio network that produces and distributes syndicated radio programs and services to affiliated radio stations. Additionally, this segment provides real-time traffic updates, weather information, sports content, and news updates. iHeartMedia, Inc. (NASDAQ:IHRT)’s revenue of $811.2 million exceeded Wall Street estimates by $15.77 million.

On March 1, B. Riley analyst Daniel Day reiterated a Buy rating on iHeartMedia, Inc. (NASDAQ:IHRT) but lowered the firm’s price target on the shares to $16 from $22 following the Q4 results. The analyst suggested that the Q1 revenue guidance indicates a further decline in national advertising expenditure, building upon the initial decrease observed last summer. This is attributed to advertisers exercising caution with their budgets early in the year. Considering the challenging advertising environment and concerns regarding long-term challenges in broadcast radio, the analyst advised investors to exercise patience with iHeartMedia, Inc. (NASDAQ:IHRT) as they enter 2023.

According to Insider Monkey’s fourth quarter database, 27 hedge funds were long iHeartMedia, Inc. (NASDAQ:IHRT), compared to 28 funds in the prior quarter. Silver Point Capital is the largest stakeholder of the company, with 5.5 million shares worth $34 million. 

Palm Harbour Capital made the following comment about IHeartMedia, Inc. (NASDAQ:IHRT) in its Q4 2022 investor letter:

“The top detractor was IHeartMedia, Inc. (NASDAQ:IHRT) (-24.3% -45 bps), the American radio and podcasting company. The company is the highest levered business in our portfolio and has suffered on fears of an advertisement slowdown. Company insiders continue to buy stock in the market and the company as of yet, has not seen the drastic slow-down the market is predicting. With long debt maturities and a growing podcasting business, as well as likely interest from a major shareholder, we think the company can survive all but the harshest of recessions. If, on the other hand, there is even a couple years of moderate growth, the company could be worth many multiples of the current share price.”

8. Nexstar Media Group, Inc. (NASDAQ:NXST)

Number of Hedge Fund Holders: 31

Nexstar Media Group, Inc. (NASDAQ:NXST) is a company that specializes in acquiring, developing, and operating television stations, interactive community websites, and digital media services in the United States. The company is primarily involved in television broadcasting and digital media. On April 28, Nexstar Media Group, Inc. (NASDAQ:NXST) declared a $1.35 per share quarterly dividend, in line with previous. The dividend is payable on May 26, to shareholders of record on May 12. It is one of the best broadcasting stocks to invest in. 

As per Wells Fargo, Nexstar Media Group, Inc. (NASDAQ:NXST) has provided guidance indicating that they expect a high-single to low-double digit percentage growth in gross retransmission for 2023. Wells Fargo believes that the ongoing debates regarding retransmission fees are generally well understood, although they may not be completely resolved yet. While the intensity of the debates is decreasing, Wells Fargo suggested that there are still potential risks associated with the guidance provided. Therefore, the firm chooses to maintain a neutral stance with a price target of $175 and an Equal Weight rating on Nexstar Media Group, Inc. (NASDAQ:NXST) shares on March 21.

According to Insider Monkey’s fourth quarter database, 31 hedge funds were bullish on Nexstar Media Group, Inc. (NASDAQ:NXST), compared to 32 funds in the prior quarter. Amy Minella’s Cardinal Capital is the largest stakeholder of the company, with 943,570 shares worth $165 million. 

Like Warner Bros. Discovery, Inc. (NASDAQ:WBD), Comcast Corporation (NASDAQ:CMCSA), and Paramount Global (NASDAQ:PARA), Nexstar Media Group, Inc. (NASDAQ:NXST) is one of the top broadcasting stocks to watch. 

Here is what Richie Capital Group has to say about Nexstar Media Group, Inc. (NASDAQ:NXST) in its Q1 2022 investor letter:

“Nexstar Media Group (NXST up 24.8%) – The television broadcasting and digital media company surged during the quarter after presenting at an investor conference where management pointed to a strong 2022 for both political advertising and retransmission. They have exposure to more than 80% of markets with competitive mid-term political races. NXST is developing new ad categories such as sports betting and they are focused on expanding digital ad revenue and providing digital solutions to local advertisers. Auto advertising will return in the fall as auto dealerships re-enter the market to sell their replenished inventory.”

7. Fox Corporation (NASDAQ:FOX)

Number of Hedge Fund Holders: 34

Fox Corporation (NASDAQ:FOX) functions as a news, sports, and entertainment company. Its operations are divided into three segments – Cable Network Programming, Television, and Other, Corporate and Eliminations. On April 19, Rosenblatt maintained a Neutral rating on Fox Corporation (NASDAQ:FOX) and decreased its price target on the shares from $35 to $33. The revised target considers the analyst’s estimation of a $1 per share impact from the Dominion settlement after taxes. The firm anticipates a similar impact in the future due to a settlement with Smartmatic USA next year. It assumes that the increasing number of lawsuits will lead to improved legal measures to prevent similar incidents from occurring again. 

According to Insider Monkey’s fourth quarter database, 34 hedge funds were bullish on Fox Corporation (NASDAQ:FOX), compared to 32 funds in the prior quarter. Donald Yacktman’s Yacktman Asset Management is the biggest stakeholder of the company, with 8.6 million shares worth $247 million. 

6. DISH Network Corporation (NASDAQ:DISH)

Number of Hedge Fund Holders: 37

DISH Network Corporation (NASDAQ:DISH) is an American company that specializes in providing pay-TV services within the United States. The company operates through two main segments – Pay-TV and Wireless. Under the DISH TV brand, it offers video services to customers. These services encompass programming packages that include a wide range of content from national broadcast networks, local broadcast networks, national and regional cable networks, regional and specialty sports channels, premium movie channels, and packages with international programming.

On April 12, Barclays reduced the price target for DISH Network Corporation (NASDAQ:DISH) to $10 from $14 while maintaining an Underweight rating on the shares. The analyst expressed concern that margin-related issues may arise in the cable and satellite industry following worries about unit growth.

According to Insider Monkey’s fourth quarter database, 37 hedge funds were bullish on DISH Network Corporation (NASDAQ:DISH), compared to 40 funds in the prior quarter. Boykin Curry’s Eagle Capital Management held the largest stake in the company.

Here is what ClearBridge Investments has to say about DISH Network Corporation (NASDAQ:DISH) in its Q2 2021 investor letter:

“Portfolio holdings in the communication services and financial sectors also made strong contributions. Dish Network continues to make progress on the buildout of its greenfield 5G network, with Las Vegas slated to become the first market launched later this year. The company gained credibility, and its stock reacted favorably, after it announced a partnership with Amazon to deploy a 5G cloud-native network using AWS’s cloud infrastructure. While the stock has been volatile in recent quarters, we continue to feel confident in Dish’s long-term prospects, which include competing as a fourth U.S. wireless carrier. Charter Communications has been executing well and benefiting from the growth in residential broadband, which has been accelerated by COVID-19 and should see further support from the Biden Administration’s infrastructure bill, which earmarks $65 billion for broadband buildout. In addition, we expect the company to continue to grow its wireless business, leveraging its mobile virtual network operator (MVNO) relationship with Verizon. The company continues to generate strong and growing free cash flow and deploys it toward consistent and material share buybacks.”

5. Paramount Global (NASDAQ:PARA)

Number of Hedge Fund Holders: 38

Paramount Global (NASDAQ:PARA) is a global media and entertainment company that operates through three segments – TV Media, Direct-to-Consumer, and Filmed Entertainment. The TV Media segment manages various domestic and international broadcast networks, including CBS Television Network, Network 10, Channel 5, Telefe, and Chilevisión. Additionally, it oversees cable networks such as Paramount Media Networks, Nickelodeon, BET Media Group, and CBS Sports. It is one of the best broadcasting stocks to consider. 

On April 14, Wells Fargo analyst Steven Cahall revised down the firm’s estimate for Paramount Global (NASDAQ:PARA)’s advertising revenue in the first quarter by 1% to $2.6 billion, representing an 8% decrease compared to the previous year. The analyst noted that the firm’s estimate is now 3% lower than the consensus forecast for overall advertising, including 2% lower at TV Media and 5% lower at Direct-to-Consumer (DTC). The analyst also highlighted reports suggesting that Paramount Global (NASDAQ:PARA) is considering selling majority stakes in Noggin and BET Group, along with the ongoing sale of Simon & Schuster, as an indication of financial strain on the company’s balance sheet. As a result, Wells Fargo maintained an Underweight rating on Paramount shares, with a price target of $11.

According to Insider Monkey’s fourth quarter database, 38 hedge funds were bullish on Paramount Global (NASDAQ:PARA), compared to 40 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 93.6 million shares worth $1.5 billion. 

4. The Liberty SiriusXM Group (NASDAQ:LSXMA)

Number of Hedge Fund Holders: 46

The Liberty SiriusXM Group (NASDAQ:LSXMA) is one of the best broadcasting stocks to invest in. The company operates in the entertainment industry in the United States and Canada. The Liberty SiriusXM Group (NASDAQ:LSXMA) offers a range of services including music, sports, entertainment, comedy, talk, news, traffic, weather channels, podcasts, and infotainment. These services are delivered through their own satellite radio systems and can also be streamed through mobile and home device applications, as well as other consumer electronic equipment. It is one of the best broadcasting stocks to invest in. 

On April 23, Seaport Research analyst David Joyce started coverage of The Liberty SiriusXM Group (NASDAQ:LSXMA) with a Neutral rating. The firm has initiated coverage on ten companies in the Live Sports & Entertainment segment, generally holding a positive view. This is due to the demonstrated operational resilience of these companies during economic downturns, the long-term value of professional sports teams, and the potential for certain companies to experience significant growth once catalysts are realized, even though this may take some time, the analyst wrote in a research note. 

According to Insider Monkey’s fourth quarter database, 46 hedge funds were bullish on The Liberty SiriusXM Group (NASDAQ:LSXMA), compared to 52 funds in the prior quarter. 

Sequoia Fund made the following comment about The Liberty SiriusXM Group (NASDAQ:LSXMA) in its Q4 2022 investor letter:

“Shares of The Liberty SiriusXM Group (NASDAQ:LSXMA), the holding company through which we own the Formula One motorsport league, declined this year, though by significantly less than the S&P 500 Index. Business performance was superb. For full-year 2022, Liberty Media’s revenues are expected to be up almost 20%, with profits up even more. This robust growth is the result of a continued recovery from pandemic-related disruptions, but even after adjusting for this recovery the business grew nicely. Versus 2019, Liberty Media’s revenues and per share earnings power are expected to have compounded at annual rates of approximately 7% and 23%, respectively.

Formula One has made very significant progress since Sequoia first acquired shares via a private placement in 2017. Formula One has for decades been the pinnacle of global motorsport, but under previous management it suffered from internecine fissures and short-sighted strategy that were negatively impacting the sport and the business. 2022 saw the full implementation of a new Concorde Agreement signed in 2020. The Concorde Agreement lays out the key economic, technical and sporting terms on which the teams participate, and this most recent one realigns the teams and the league in a manner that should pay off for all parties involved. The new Concorde Agreement has already had some positive impact on the sport and the business, and we believe the majority of the benefits have yet to be realized.

Already, the sport is healthier than it has been for a long time. TV viewership was up globally again this year, which helped Formula One secure a round of richer broadcast deals in Europe as well as in the US, where the new deal with ESPN/ABC is rumored to be almost 10x more remunerative than the last one. In 2022, US TV viewership was up almost 30% over last year, building on the momentum of previous years and driven by the latest season of Netflix’s Drive to Survive series and the calendar’s new Miami race. Liberty Media plans to add a third US race in 2023, in Las Vegas. Instead of relying on a promoter as it typically does, Liberty Media will run the Las Vegas race itself, which will require significant investment but should generate an attractive return…” (Please click here to read the full text)

3. TEGNA Inc. (NYSE:TGNA)

Number of Hedge Fund Holders: 50

TEGNA Inc. (NYSE:TGNA) is a media company based in the United States. Its operations revolve around television stations that provide television programming and digital content. The company delivers news content to consumers through multiple platforms, including online, mobile devices, connected televisions, and social media. TEGNA Inc. (NYSE:TGNA) is one of the best broadcasting stocks to buy. 

On April 12, Benchmark maintained a Buy rating on TEGNA Inc. (NYSE:TGNA) but lowered the firm’s price target on the shares to $22 from $24. The firm acknowledged that, from a broad perspective, the shares appear undervalued based on blended EBITDA estimates for 2022 and 2023. Furthermore, they consider the shares even more attractively priced based on estimates for 2023 and 2024. However, the analyst noted uncertainty regarding a potential retest of the stock’s recent lows in the short term. 

According to Insider Monkey’s fourth quarter database, 50 hedge funds were bullish on TEGNA Inc. (NYSE:TGNA), compared to 45 funds in the prior quarter. Carl Tiedemann and Michael Tiedemann’s TIG Advisors is the largest stakeholder of the company, with 6.4 million shares worth $137.5 million. 

Here is what Hourglass Capital has to say about TEGNA Inc. (NYSE:TGNA) in its Q1 2022 investor letter:

“At the portfolio level, clients fully invested at the start of the year saw an average return of 5.4% in the first quarter after all associated fees. I made three sales during the quarter, all for very different reasons. First, I sold the entirety of our position in TEGNA, Inc., a broadcasting and digital media business, after the company received a leveraged buyout offer by two joint-venture private equity investors, Standard General and Apollo.”

2. Warner Bros. Discovery, Inc. (NASDAQ:WBD)

Number of Hedge Fund Holders: 60

Warner Bros. Discovery, Inc. (NASDAQ:WBD) operates as a media and entertainment company worldwide. Warner Bros. Discovery, Inc. (NASDAQ:WBD) has a strong presence in traditional television broadcasting. It operates a number of television networks, including popular channels such as CNN, TNT, TBS, Cartoon Network, and HBO. These networks offer a diverse array of programming, including news, sports, scripted and reality shows, animated content, and premium content. It is one of the best broadcasting stocks to invest in.

On April 14, Wells Fargo reiterated an Overweight rating and a $20 price target on Warner Bros. Discovery, Inc. (NASDAQ:WBD) shares ahead of the company’s upcoming Q1 report.

According to Insider Monkey’s fourth quarter database, 60 hedge funds were bullish on Warner Bros. Discovery, Inc. (NASDAQ:WBD), compared to 61 funds in the prior quarter.

Longleaf Partners Fund made the following comment about Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its Q1 2023 investor letter:

“Warner Bros. Discovery, Inc. (NASDAQ:WBD) – Media conglomerate Warner Bros Discovery (WBD) was the top contributor in the quarter. WBD was a top detractor last year in the face of concerns over management’s ability to effectively merge two businesses with different cultures, high leverage and exposure to cord cutting. In 2023, a solid plan is emerging for the integration of the businesses. This management team has a strong track record of integrating assets and growing free cash flow (FCF) per share, which is beginning to happen at WBD. Management has guided that the company will likely be below 4 times net debt to EBITDA by the end of 2023 and to 3x or less by the end of 2024, taking WBD out of the penalty box. We have seen this management team successfully execute this playbook before when Discovery bought former Southeastern holding Scripps in 2017. We are also finally beginning to see industry price rationality across the streaming world.”

1. Comcast Corporation (NASDAQ:CMCSA)

Number of Hedge Fund Holders: 72

Comcast Corporation (NASDAQ:CMCSA) operates as a media and technology company worldwide. It operates through Cable Communications, Media, Studios, Theme Parks, and Sky segments. Comcast Corporation (NASDAQ:CMCSA) is one of the biggest broadcasting and cable television companies in the world. On April 27, the company reported a Q1 non-GAAP EPS of $0.92 and a revenue of $29.69 billion, outperforming Wall Street estimates by $0.10 and $350 million, respectively. 

On May 1, BofA analyst Jessica Reif Ehrlich upgraded Comcast Corporation (NASDAQ:CMCSA) to Buy from Neutral with a price target of $49, up from $44. In a research note to investors, the analyst stated that Comcast Corporation (NASDAQ:CMCSA) reported strong financial results in the first quarter and management provided positive commentary. The firm believes that these results indicate a turning point for the company. 

According to Insider Monkey’s fourth quarter database, 72 hedge funds were bullish on Comcast Corporation (NASDAQ:CMCSA), compared to 73 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest position holder in the company. 

ClearBridge Multi Cap Growth Strategy made the following comment about Comcast Corporation (NASDAQ:CMCSA) in its Q4 2022 investor letter:

“That balance served the Strategy well throughout the year, enabling outperformance against the benchmark in all four quarters. Results in the last three months were driven by a long-time media position in Comcast Corporation (NASDAQ:CMCSA), which we consider a durable compounder due to its consistent revenue growth and free cash flow generation. Comcast shares saw a snapback after a difficult first half of the year caused by cord cutting in its cable business and slowing subscriber growth in its broadband business. A flexible balance sheet and strong cash generation enabled the company to repurchase shares during the selloff earlier in the year.”

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Disclosure: None. 14 Best Broadcasting Stocks To Buy is originally published on Insider Monkey.