by Louis Navellier | April 25, 2014 5:58 am
The economy continues to move in fits and starts and we are still seeing a mixed bag of economic reports. If we step back and take a big picture look we can see that things are getting better than they were a few years ago and we are thawing out form the big chill we experienced during the December to March time frame.
It still not strong enough, however, for consumers to just simply abandon their reserve and begin blowing big bucks on entertainment and nights out on the town. While this may hurt some businesses it has been great for those companies that provide at home entertainment choices at reasonable prices.
We might not be ready to trip the light fantastic but we still want to be entertained and some media stocks are seeing excellent fundamental and financial performance as a result.
Here are three media stocks I like right now:
Netflix (NFLX) is a great example that is seeing excellent results from consumer’s desire for low-cost entertainment choices. Its streaming video service is attractively priced, and even after it implements price increases that were announced recently, it still will be cheaper per month than a single night out to the movies.
Earlier this week, NFLX announced that they earned 86 cents a share with revenues of $1.27 billion for its first quarter of the year.
During the same period last Netflix earned 5 cents per share on $1.02 billion in sales. Analysts had expected earnings of 81 cents per share. NFLX added 2.25 million U.S. customers and ended the quarter with 35.7 million members.
The improved fundamentals were picked up by Portfolio Grader, and NFLX stock was upgraded two weeks just before earnings were released. NFLX shares are a strong buy at the current price.
Emmis Communications (EMMS) is a diversified media company that engages in radio broadcasting and magazine publishing operations. Although most of their operations are in the United States they also own and operate national radio networks in Slovakia and Bulgaria. They also publish various city and regional magazines, which include Texas Monthly, Los Angeles, Atlanta, Indianapolis Monthly, Cincinnati, Orange Coast, Country Sampler, and related magazines.
The company recently released earnings and for the full year operating income was $22.2 million, compared to $16.5 million in the prior year. The steady improvement in fundamentals resulted in the stock being upgraded two weeks ago to an “A” by Portfolio Grader. Shares of EMMS are a strong buy at the current level.
Dish Network (DISH) is one of the leading entertainment at home companies today. The company provides direct broadcast satellite subscription television services in the United States. It offers approximately 230 basic video channels, 60 Sirius satellite radio music channels, 30 premium movie channels, 35 regional and specialty sports channels, 3,200 local channels, 275 Latino and international channels, and 70 channels of pay-per-view content.
Dish has posted two consecutive 50%-plus positive earnings surprises and analysts have raised their estimates for the first two quarters of the year as well as the full year 2014. I expect them to post stellar results again when they report earnings on May 5. The stock was upgraded to an “A” by Portfolio Grader back in November and remain a strong buy at the current price.
Louis Navellier is the editor of Blue Chip Growth.
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