The E.W. Scripps Company Rises 51% YTD: Should You Buy the Stock Now?

Core Insights - The E.W. Scripps Company (SSP) shares have increased by 51.1% year-to-date (YTD), outperforming the Zacks Broadcast Radio and Television industry's growth of 34.1% and the Zacks Consumer Discretionary sector's return of 12.4% [2] - SSP's strong performance is attributed to effective execution in live sports and Connected TV (CTV) strategies, along with disciplined cost management [3] Performance Comparison - SSP has outperformed competitors such as Nexstar Media Group (NXST), Sinclair (SBGI), and Paramount Global (PARA), with NXST and PARA returning 14.7% and 23.3% YTD, respectively, while SBGI has lost 8.4% [2][9] Strategic Initiatives - SSP has renewed its multi-year deal with the WNBA, ensuring ION remains the league's national home for Friday night games, which enhances advertiser demand [6] - The company has also signed an agreement to broadcast Tampa Bay Lightning games at no cost to viewers, launching a new local station, The Spot - Tampa Bay 66, which improves viewer loyalty and opens new advertising opportunities [7] Financial Performance - In Q1 2025, Scripps Networks contributed 37.8% of total company revenues, with segment profit increasing from $49.7 million to $64.1 million despite a 5.4% decline in revenues [14] - SSP has reaffirmed its 2025 target of 400-600 basis points of margin expansion, with first-quarter results already exceeding that range due to early execution of cost-saving measures [14] Earnings Estimates - The Zacks Consensus Estimate for 2025 earnings is pegged at 8 cents per share, indicating a 92.59% year-over-year decline, while the consensus for 2025 revenues is $2.19 billion, suggesting a 12.81% year-over-year decline [15] Valuation - SSP stock is currently trading at a forward 12-month Price/Earnings ratio of 7.72X compared to the industry's 32.10X, making it an attractive option for value investors [16] - The company has a Value Score of A, reinforcing its appealing valuation [16] Future Outlook - SSP is positioned for sustained momentum through the rest of the year, backed by strategic execution, expanding sports content, and a growing presence in CTV [20] - The company is expected to deliver long-term value in 2025 due to solid cost control and multiple revenue tailwinds from renewed partnerships and investments in distribution [20]