Political Season Boosts Local TV Stations: Impact and Outlook

Local television stations eagerly anticipate political seasons, as they bring a surge in political advertising and significant revenue opportunities. With the political landscape shaping up and only two main candidates on the Republican side, along with a clear choice among the Democrats, questions arise about how this scenario affects local TV stations. In this article, we’ll explore the potential impact of the 2024 political season on local TV stations and delve into the top stocks poised to benefit from political ad spending.

A Potential Boost for Local TV Stations

Local TV stations can potentially benefit from the current political landscape, where one Republican candidate appears to be leading in the polls and the Democratic side has a clear frontrunner. The key factor that can work in favor of local TV stations is if the candidates engage in early and intense campaigning, rather than delaying it until after Labor Day.

Political advertising injects a regular shot of adrenaline into the TV business every two years when House and Senate seats are up for grabs. This dose becomes even more potent when the White House is at stake. Despite the ongoing decline in TV viewership, 2024 is expected to be a record year for the industry. A contentious presidential primary and general election, along with numerous congressional, Senate, and gubernatorial races, will drive political advertising expenditures across all media platforms to a staggering $17 billion.

The Top Six Stocks Expected to Benefit

Several media companies are poised to reap the rewards of increased political ad spending in 2024. Here are the top six stocks that are expected to benefit:

1. Sinclair Broadcast Group (SBGI)

• Sinclair’s stock experienced a 5% increase recently.
• The stock is currently trading at a 28% discount from its 52-week high, reached in February.
• So far in 2024, Sinclair has seen a 24% increase in its stock value.

2. Tegna Inc. (TGNA)

• Tegna is trading at a 30% discount from its February high.
• The stock has witnessed a 2% increase in value in 2024.

3. Fox Corporation (FOX)

• Fox Corporation’s stock is currently 16% below its 52-week high, which was also reached in February.
• In 2024, the stock has seen a 5.3% increase.

4. E.W. Scripps Company (SSP)

• Scripps experienced a 7% increase recently.
• The stock is trading at a 50% discount from its 52-week high, also achieved in February.
• Scripps has recorded a 1.2% increase in 2024.

5. Nexstar Media Group, Inc. (NXST)

• Nexstar’s stock witnessed a 2.25% increase recently.
• The stock is currently trading at a 19% discount from its February 52-week high.
• In 2024, Nexstar has seen a 12.5% increase in its stock value.

6. Gray Television, Inc. (GTN)

• Gray Television’s stock saw a 5% increase recently.
• The stock is trading at a 35% discount from its February 52-week high.
• So far in 2024, Gray Television has recorded a 4.7% increase in its stock value.

Local TV Stations Eye a Lucrative 2024

As the political season gains momentum, local TV stations are poised for a potentially lucrative year in 2024. The expected influx of political advertising, driven by a contentious presidential primary and general election, as well as various congressional, Senate, and gubernatorial races, is set to boost revenues for the industry.

Investors are closely watching media companies such as Sinclair, Tegna, Fox Corporation, Scripps, Nexstar Media Group, and Gray Television, all of which are well-positioned to benefit from the surge in political ad spending. While these stocks have faced challenges and are trading below their 52-week highs, the prospects of a robust political advertising season have ignited optimism among investors.

In conclusion, local TV stations are gearing up for a politically charged 2024, with the potential for record-breaking ad revenues. As political campaigns intensify, the media industry, despite changing viewership patterns, continues to play a pivotal role in shaping the narrative of elections and politics in the United States.