The television industry, to say the least, is very large. It spans from cable providers to programming networks to technologies intended to improve the television experience. Long are the of the basic cable package that only including ESPN, TNT, and Comedy Central – let alone the rabbit ears sitting atop the Zenith where you may get a static free image of network television series like The Tonight Show Starring Johnny Carson, The Rockford File, or M*A*S*H.
The television industry is perpetually evolving in this instant-access, instant-gratification and binge-watching society – especially when one of the most popular networks is subscription and streaming based, and void of a designated channel number (also read: Netflix May Want to Stay Away From Original Films).
In any event, let’s examine a few television related stocks that you may want to add or remove from your portfolio.
CBS Corp. (CBS – Analyst Report) – Sell
CBS, or as the three largest US markets (New York, Chicago, Los Angeles) call it “Channel 2,” is known for its broad reaching comedies, amazing races, and reimagining the lives of crime scene investigators. The network currently holds a Zacks Rank #4 (Sell) and is ranked 26th out of 29 companies our Broadcast Radio/TV industry.
Earnings have not shown any signs of growth despite not missing any of the last 10 estimates. With that being said, however, CBS has only outperformed marginally, posting EPS figures between $0.73 and $0.78 consistency.
CBS has missed revenue estimates the past 2 quarters, posting $3.219 billion for their 2nd-quarter and $3.5 billion for their 1st-quarter (please read CBS Beats on Earnings, Misses on Revenues & CBS Corporation Beats on Q1 Earnings, Revenues Miss for more details). If history continues to repeat itself, CBS may be in for more revenue declines.
TiVo (TIVO – Analyst Report) – Sell
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