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Gray Television (GTN) Falls More Steeply Than Broader Market: What Investors Need to Know

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Gray Television (GTN - Free Report) closed the latest trading day at $5.34, indicating a -1.84% change from the previous session's end. This change lagged the S&P 500's 0.96% loss on the day. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw a decrease of 1.18%.

The broadcast television company's stock has climbed by 18.52% in the past month, exceeding the Consumer Discretionary sector's gain of 6.56% and the S&P 500's gain of 4.3%.

Analysts and investors alike will be keeping a close eye on the performance of Gray Television in its upcoming earnings disclosure. In that report, analysts expect Gray Television to post earnings of $0.94 per share. This would mark year-over-year growth of 264.91%. Meanwhile, the latest consensus estimate predicts the revenue to be $966 million, indicating a 20.3% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.37 per share and a revenue of $3.87 billion, representing changes of +414.39% and +17.86%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Gray Television. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Gray Television is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Gray Television is holding a Forward P/E ratio of 1.24. This signifies a discount in comparison to the average Forward P/E of 10.71 for its industry.

It's also important to note that GTN currently trades at a PEG ratio of 0.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GTN's industry had an average PEG ratio of 0.89 as of yesterday's close.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 29% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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