TEGNA is coming off the struggles that marked almost the whole of last year. However, in recent weeks the company has been on the rise because of strong Q3 results and the influx of political advertising spending. Given a more favorable outlook on the regulatory environment, the management envisions growth through acquisitions. This makes TEGNA a compelling investment opportunity.
Based in the US, TEGNA Inc. provides services related to media such as broadcasts, digital media, and marketing. It is one of the largest and most diverse broadcasters in the US owning and operating 64 television stations in 51 markets. In its industry, TEGNA stands out through its commitment to serving the greater good of communities through impactful journalism and innovative marketing solutions.
TEGNA offers a range of products including local news, sports programming, and entertainment content on the company’s television stations. The company also offers digital marketing services via its subsidiary, Premion, which specializes in over-the-top (OTT) advertising solutions. Revenue sources include television station advertising, digital platforms advertising, and marketing services offered to businesses.
TEGNA encompasses a large range of clients from both local and national advertisers who are interested in reaching their target audience via television and online. The ultimate customer group includes all types of companies that aim to advertise their goods and services to a specific geographic region. With a solid market presence in the major markets of the U.S. and an emphasis on community involvement, TEGNA endeavors to engage brands with audiences while delivering reliable news and information.
Thanks to the company’s strong Q3 earnings and an increase in political ad spending, TGNA has been on a roll and rallying hard for the past two months. While its 2022 deal to sell itself to Standard General fell apart due to FCC pushback, the tides could be turning in its favor soon. A new administration, under Trump, could bring a more relaxed approach to antitrust rules making network ownership limits feel outdated in today’s streaming era. Management is optimistic about future consolidation, noting opportunities to cut costs and grow through M&A. That said, major deals might not happen until late 2025 or 2026, but the potential is keeping investors intrigued.
We’re bullish on TEGNA. The company’s strong cash flow, share buybacks (60 million shares retired since 2022), and upside from a more M&A-friendly regulatory environment make it an attractive bet.
Tegna Inc. does not rank on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held TGNA at the end of the third quarter which was 31 in the previous quarter. While we acknowledge the potential of TGNA as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as TGNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article was originally published at Insider Monkey.