Bull’s Eye Report: Madison Square Garden (MSG)

Entertainment stocks are hot, but MSG's chart is looking the best

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
Madison Square Garden
MSG Entertainment 9.8 +30.93% $57.86

Why We Like The Stock:

Madison Square Garden Co. (MSG) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Like other movie and entertainment stocks Cinemark Holdings (CNK), LiveNation Entertainment (LYV), and Regal Entertainment (RGC), MSG has been outperforming the major indices by a wide margin this year.

While lots of stocks in lots of different places are “working” this year, we like to feature stocks that outperform in bull markets while maintaining healthy technical set-ups. MSG sports a positive technical set-up that is not out of control (parabolic), but also does not display any weakness. The chart is a beautiful long-term uptrend with modest, brief phases of consolidation. Recently, the stock has pulled back from mid-May highs just north of $62 back down to its 50-day moving average, where it bounced right off and seems to be turning a corner to the upside yet again. We like MSG at current prices for a short-term move back to recent highs, but also for a longer term hold while this bull-market continues to roar. So long as it stays above its 50-day moving average.

We Would Be Buyers:

At the current price (~$59.35) or on a pullback to the 50-day moving average ($58.09).

Company Profile:

The Madison Square Garden Company is a fully-integrated sports, entertainment and media business. The company has three segments: MSG Media, MSG Entertainment and MSG Sports. The company conducts a portion of its operations at venues that it either owns or operates under long-term leases, including the Madison Square Garden Arena the Theater at Madison Square Garden and as The Chicago Theatre in Chicago. It leases Radio City Music Hall and the Beacon Theatre in New York City. The Company also has a booking agreement with respect to the Wang Theatre in Boston.

Stock Rating: 9.8

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Madison Square Garden – Last Three Months

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Madison Square Garden – Last 12 Months

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Madison Square Garden – Last Five Years

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At the time of publication the editor and affiliated companies own the following positions: MSG

Note: Positions may be bought or sold while this publication is in circulation without notice.


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