Media stocks are beating the market by as much as 600% per cent since March 2009 but some still are not overvalued.
Nomura Securities analyst Michael Nathanson, notes that the sector is up 24.4% in the past six months while Standard & Poor’s 500 jumped only 15.1%.
The logic: Prices are up “to levels where the relative valuation opportunity is just less obvious, [so] the sector is likely to tread water as investors fret about both the impact of the Japan earthquake and high commodity prices on advertising spend.”
That said, he believes there are values out there — specifically in conglomerate stocks such as CBS Corp., Walt Disney, News Corp., and Viacom.
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