Unpacking This Broadcasting Stock's Intriguing Profile

Nexstar Media Group has cooled off from its March record high

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Media and broadcasting company Nexstar Media Group, Inc. (NASDAQ:NXST) may not generate the headlines as its peers, but the stock continues to be an intriguing value investment, despite it's huge run-up over the past year. The company is coming off one of its best financial years, where it grew revenues by 48% and net income increased by a massive 252%. As a result, Nexstar Media Group stock currently trades at an incredibly attractive price-earnings ratio of 8.14. However, NXST's forward price-earnings ratio is estimated to be 14.86, which isn’t quite as exciting but still represents a great value. Given the inconsistent data profile, we figured NXST was worth a deeper dive.

On the charts, Nexstar Media Group stock scored a record high of $163.62 on March 18. Since then, the shares have consolidated below $155, despite a 38% year-to-date tally.  While the stock also offers its shareholders a forward dividend of $2.80 and a dividend yield of 1.86%, there isn't much in store from analyst-drive tailwinds, considering all six in coverage rate NXST a "strong buy." There isn't much to be had from short covering rallies, either, with a slim 5.7% of the stock's total available float sold short.

Options traders are targeting puts with gusto, though. The security's 10-day put/call volume ratio of 1.08 shows that puts are outnumbering calls on an absolute basis at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). What's more, this ratio sits higher than 91% of all other readings from the past year, indicating a healthier-than-usual appetite for these bearish bets over bullish of late. 

The good news for those put traders is the equity does have affordably priced premium at the moment. This is per the stock's Schaeffer's Volatility Index (SVI) of 31%, which stands higher than just 3% of all other readings in its annual range. This implies that options players are pricing in relatively low volatility expectations. 


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