Sinclair Inc (SBGI) is a Zacks Rank #1 (Buy) and it sports an A for Value and an A for Growth. Normally I select stocks that have strong revenue growth potential, but this one has a wonderful valuation and good growth potential. Let’s explore more about this company in this Bull of The Day article.
Description
Sinclair, Inc., a media company, focuses on providing content on local television stations and digital platforms. The company distributes its content through broadcast platforms and third-party platforms that consist of programming provided by third-party networks and syndicators, local news, other original programming, and college sports. It also owns digital media products that are complementary to its portfolio of television station related digital properties, as well as interests in, owns, manages, and/or operates technical and software services companies, intellectual property for the advancement of broadcast technology, and other media and non-media related businesses and assets, including interests in real estate, venture capital, private equity, and direct investments. Sinclair, Inc. was founded in 1986 and is headquartered in Hunt Valley, Maryland.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For Sinclair, I see four consecutive beats Zacks Consensus Estimate. That is not that great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
I see a good earnings history with the company beating the number in each of the three quarters that had a Zacks Consensus Estimate. The last two quarters were massive beats.
Two quarters ago the company reported EPS of 90 cents when 28 was expected. That 62 cent beat translates to a 221% positive surprise.
Last quarter saw EPS of $2.71 when a loss of 59 cents was expected. The $3.30 difference works out to be a 559% positive earnings surprise.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
Over the last 60 days, earning estimates have increased for SBGI.
I see a big shift in estimates over the last 30 days. The estimate for this quarter improved from a loss of 63 cents to a loss of 58 cents.