Live Nation Stock is Finally Showing Post-Pandemic Weakness

The stock has dropped roughly 28% this year

facebook twitter linkedin


Live Nation Entertainment, Inc. (NYSE:LYV) is an American global entertainment company that promotes, operates, and manages ticket sales for live entertainment in the United States and internationally. The stock has lost 28.6% this year, though a familiar floor at the $84 mark has kept the stock from plummeting back toward its July 2021 lows near the $74 level. Plus, LYV is bucking today's broad-market selloff, and was last seen up 5.8% to trade at $90.37.

lyv may 19

Short sellers have been hitting the exits, with short interest falling 11.1% in the last two reporting periods. However, the 13.76 million shares sold short still make up a substantial 9% of the stock's available float, and would take over a week to cover at LYV's average daily pace of trading. 

Analysts, meanwhile, remain incredibly optimistic. Of the nine in coverage, all but two call it a "strong buy." What's more, the 12-month consensus price target of $129.54 is a 51.7% premium to current levels. 

Drilling down even further, the entertainment company provides mixed valuation metrics with an extremely high forward price-earnings ratio of 270.27 but an average price-sales ratio of 2.57. Nonetheless, Live Nation should see less exaggerated price-earnings figures as the business continues to recover post-pandemic. For fiscal 2022, LYV is estimated to generate earnings of 69 cents per share, which would mark a shift into profitability.

In addition, LYV is expected to grow its earnings 121.7% for fiscal 2023, with an estimated earnings per share (EPS) of 1.53. However, Live Nation’s revenue growth is expected to slow down to a 12.5% increase for fiscal 2023, despite estimates indicating that the company will conclude fiscal 2022 with 118.8% revenue growth.

Live Nation stock's valuation continues to be an issue despite the business’ expected recovery. Nonetheless, having weathered the worst possible scenario and maintaining a manageable balance sheet with $5.87 billion in cash and $7.61 billion in total debt, LYV will likely be a winner for investors looking to hold the stock long-term.

 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners