For today’s bulletin, we take a look at our latest top-five STRONG BUY stocks and provide a link to download a FREE STOCK REPORT on Madison Square Garden Networks (MSGN)

VALUATION WATCH: Overvalued stocks now make up 63.19% of our stocks assigned a valuation and 24.31% of those equities are calculated to be overvalued by 20% or more. Fifteen sectors are calculated to be overvalued.

When we query our systems for the top STRONG BUY stocks today, MSG Networks is included among our top picks. Members can always screen for these stocks using our advanced screening page HERE or our 5-Engine Stock page HERE.

MSG Networks
By Anthony Quintano [CC BY 2.0], via Wikimedia Commons
MSG Networks

MSG Networks Inc. (MSGN) is engaged in production and content development which comprised of sports and entertainment networks, MSG Network and MSG+ as well as MSGNetworks.com and MSG GO. MSG Networks Inc., formerly known as Madison Square Garden Company, is based in New York.

These days many assert that “content is king” and, in the case of Madison Square Garden networks, we may be seeing a test of that maxim. Media reports starting last week indicate that entity is being shopped around as owner James Dolan seeks to raise cash in order to fund a bid for Madison Square Garden itself.

MSG Networks receives a high rate for every subscriber to its content, which includes the games of the NY Knicks,Islanders, and Rangers, the New Jersey Devils, and other big-market franchises. While ESPN, a national network, receives @7/subscriber from cable providers, Dolan charges them $5/subscriber.

MSG Networks is relatively new, and this move is not unexpected given the fact that many predicted this course of action when the spin off occurred less than two years ago.

Verizon, AT&T, and other telecom giants are the expected suitors, but regulatory issues apply here and some of the giants may avoid the purchase at a time when they are under increased scrutiny from the FCC and other regulatory bodies.

The stock has been up of late, and it is highly rated by our models. We have had a BUY or STRONG BUY on the stock for much of the past six months. We calculate the stock to be undervalued, and that is a good sign for an impending purchase since the offer may more approximate value represented by the fundamentals than the current market price.

Below is today’s data on MSG Networks Inc. (MSGN):

VALUENGINE RECOMMENDATION: ValuEngine continues its STRONG BUY recommendation on MSG Networks Inc. for 2017-04-07. Based on the information we have gathered and our resulting research, we feel that MSG Networks Inc. has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE P/E Ratio and Momentum.

You can download a free copy of detailed report on MSG Networks Inc. (MSGN) from the link below.

ValuEngine Forecast
Target
Price*
Expected
Return
1-Month 24.54 1.39%
3-Month 24.03 -0.71%
6-Month 24.03 -0.71%
1-Year 28.25 16.75%
2-Year 21.02 -13.14%
3-Year 18.16 -24.96%

 

Valuation & Rankings
Valuation 49.03% undervalued Valuation Rank(?) 95
1-M Forecast Return 1.39% 1-M Forecast Return Rank 100
12-M Return 47.65% Momentum Rank(?) 82
Sharpe Ratio -0.12 Sharpe Ratio Rank(?) 38
5-Y Avg Annual Return -7.63% 5-Y Avg Annual Rtn Rank 33
Volatility 61.28% Volatility Rank(?) 27
Expected EPS Growth -6.11% EPS Growth Rank(?) 15
Market Cap (billions) 1.88 Size Rank 71
Trailing P/E Ratio 10.57 Trailing P/E Rank(?) 92
Forward P/E Ratio 11.26 Forward P/E Ratio Rank 80
PEG Ratio n/a PEG Ratio Rank n/a
Price/Sales 2.80 Price/Sales Rank(?) 38
Market/Book n/a Market/Book Rank(?) n/a
Beta -1.07 Beta Rank 95
Alpha 0.45 Alpha Rank 90

DOWNLOAD A FREE SAMPLE OF OUR MADISON SQUARE GARDEN NETWORKS (MSGN) REPORT BY CLICKING HERE

Article by Value Engine