TGNA - TEGNA: A Declining Business Can Still Be A Good Stock
2024-05-30 10:03:24 ET
Summary
- TEGNA shares have underperformed due to concerns about cord-cutting and the future of television.
- Recent financial results have been mixed, but a material lift is expected in the second half of the year from the Presidential Election.
- TEGNA is aggressively managing expenses and generating strong cash flow, making it an attractive investment opportunity.
- Even at a 14% free cash flow yield, shares can rally back to $20, and the lower shares are, the more accretive the buyback is.
Shares of TEGNA ( TGNA ) have been an underperformer over the past year, missing out on the stock market’s rally, as concerns persist about cord-cutting and the future of television. Back in January, I recommended TEGNA as a strong buy , and the performance has been rather disappointing with the stock losing 6% while the broader market has rallied by 12%. I believe the market is being overly pessimistic and am still bullish....
TEGNA: A Declining Business Can Still Be A Good Stock