Before the political rise of Donald Trump, politics represented a rather dull arena, thus not providing a meaningful catalyst for even the best media stocks to buy. However, in the post-Trump ecosystem, those rules have shot out the window. Now, mainstream institutions seemingly can’t discuss anything other than politics.
It’s here that you can let the Washington-driven diatribes escalate your blood pressure or you can walk a shrewder path: acquire media stocks with high potential that might benefit from the jibber jabber. With new storylines emerging seemingly constantly, the political backdrop symbolizes an investment gold mine.
For example, Karl Rove – Senior Advisor to former President George W. Bush – argued in a Wall Street Journal op-ed that Trump invited his latest indictment due in part to his “childish defiance” of the law. GOP presidential candidate Chris Christie entered the race to seemingly antagonize Trump. It’s absolute bonkers theater, which bodes very well for top-performing media stocks.
Plus, with Florida Governor Ron DeSantis attacking both Trump and the “woke” media, a never-ending supply of political barbs will ripple throughout the blogosphere. If you’re a lover of high-growth media stocks, it’s time to get your popcorn ready.
| FOXA | Fox | $33.20 |
| NYT | New York Times | $37.24 |
| MSFT | Microsoft | $338.06 |
Fox (FOXA)
At first glance, Fox (NASDAQ:FOXA) seems a risky bet for best media stocks to buy. True, Fox News – which falls under the Fox umbrella – caters to a largely conservative audience. As well, the company’s conservative pundits such as Sean Hannity and Laura Ingraham know how to push the right buttons. Again, it all makes for great theater. However, the media giant also let go of Tucker Carlson.
Soon after, the expulsion of Tucker – which occurred in April this year – hit investor sentiment, sending FOXA sharply down. Nevertheless, it still might make a case for media stocks with high potential. Fundamentally, with social pressures forcing the de-platforming of several controversial right-wing personalities, those on the right have fewer options to see their ideological talking points being represented.
Also, FOXA makes a case for top-performing media stocks because of its relative financial resilience. Per data from Gurufocus, Fox’s three-year revenue growth rate on a per-share basis clocks in at 10.2%, above 76.51% of its peers. Also, it sports a trailing-year net margin of 7.84%, beating out 73% of its rivals.
New York Times (NYT)
A thorn on Fox’s side, New York Times (NYSE:NYT) might seem like another risky play on the best media stocks to buy. While the news outlet produces excellent journalism – particularly in less-politically related matters such as the market and the economy – it’s the political op-eds that, for better or for worse dominate the discussion. And let’s face it, the NYT also knows how to push buttons in this specific department.
However, I believe the Times ranks among the high-growth media stocks because of its “addressable market.” As stated earlier, the race for the Republican presidential candidacy has become a circus act. I’m not saying that as a matter of ideological critique. Rather, the drama of so many high-profile individuals going after each other organically weaves multiple compelling narratives.
Look at it this way. If you were an opinion writer for the Times, the chaos within the ranks of the GOP symbolize pure gold. Honestly, such writers wouldn’t have to rely on hyperbole because the Republicans themselves up the ante. Basically, it’s free money, making NYT one of the media stocks set to blast off.
Microsoft (MSFT)
At first glance, Microsoft (NASDAQ:MSFT) doesn’t appear an appropriate entity for best media stocks to buy. Sure, it’s a powerhouse technology name that arguably deserves to be included in everyone’s portfolio. But a media play? Before you start typing a letter to the editor, please note that Microsoft owns MSN. And MSN may be its own media goldmine.
If you go to the website, you’ll notice that it’s actually a content aggregator for multiple media sources. With its vast content partnership, MSN is a useful one-stop shop to get the important news for free. Of course, that alone doesn’t necessarily make MSFT one of the media stocks with high potential. Rather, it’s what the company integrates – commentary from the public – that makes MSFT compelling.
To be sure, Microsoft doesn’t allow comments for topics that it deems would arouse far too much vitriol. Nevertheless, the company is surprisingly flexible on the topics where it facilitates open discussion. And boy, the internet doesn’t miss an opportunity for flame wars. It’s awfully cynical but MSFT presents an enticing case for top-performing media stocks.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
