SSP Should I Buy
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E.W. Scripps Co (SSP) is not a strong buy for a beginner, long-term investor at this time. Despite some positive technical indicators and recent acquisitions, the company's financial performance is significantly weak, with substantial declines in revenue, net income, and EPS. Additionally, the options data and trading sentiment do not strongly support a bullish outlook. Holding the stock or exploring other investment opportunities may be a better approach.
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200), and the MACD histogram is positive and expanding. However, the RSI of 80.019 indicates the stock is overbought, suggesting limited immediate upside potential. Key resistance is at 4.563, with support at 3.497. Short-term trends suggest a 70% chance of a -0.82% decline in the next day and -2.72% in the next week.
The company is expanding its market presence by acquiring the ABC affiliate WTVQ in Lexington, Kentucky, for $15.8 million, creating a duopoly with its NBC affiliate WLEX. This move could enhance its market share and revenue potential in the region.
The company's financial performance is severely deteriorating, with significant YoY declines in revenue (-98.60%), net income (-155.91%), and EPS (-3701.45%). Gross margin has also plummeted to -3541.38%. Additionally, the stock is overbought, and short-term trends suggest potential downside.
In Q4 2025, the company reported a significant decline in financial metrics: Revenue dropped by -98.60% YoY to $10.17 million, net income fell by -155.91% YoY to -$44.91 million, and EPS declined by -3701.45% YoY to -24.85. Gross margin also dropped dramatically to -3541.38%.
Benchmark raised the price target to $10 from $8 with a Buy rating, while Wells Fargo raised the target to $3.90 from $3 with an Equal Weight rating. Analysts are cautiously optimistic but acknowledge industry consolidation as a potential driver for future growth.
