There are opportunities now in media stocks, according to Doug Creutz of Cowen & Company and David Joyce at Miller Tabak. (See their stock picks, below.)
“We like companies that have more exposure to the cable networks such as Time Warner, Disney and Viacom,” Joyce told CNBC.
“That’s because they’ve got ad revenue that looks like the bottom is being formed and is starting to improve and they have the recurring monthly fees.”
Joyce said he also likes the cable operator companies because they generate monthly revenue from subscribed customers.
Creutz said he is more cautious about the sector, but has his eyes on a particular animation company.
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“As long as the consumer is under pressure from unemployment, negative wealth effects and constricting credit, it’s hard to see any of these companies generating revenue growth,” said Creutz.
“The one company I do like is DreamWorks Animation—you’ve got a multi-year story where they’re expanding their film-slate, expanding their television business…I think there’s a real secular earnings growth story that is independent of what the economy does over the next couple of years.”
Time Warner Cable
No immediate information was available for Joyce or Creutz.