Reasons to Consider TEGNA Inc. (TGNA) as a Strong Momentum Stock Investment
Momentum Investing Overview: Momentum investing focuses on following a stock's recent price trends, with the strategy of buying high and selling higher, relying on established price movements for profitable trades.
TEGNA Inc. Performance: TEGNA Inc. (TGNA) has a Momentum Style Score of B and a Zacks Rank of #2 (Buy), showing strong performance with a 34.03% increase over the past week and a 49.56% rise over the last year.
Earnings Estimate Revisions: Recent earnings estimate revisions for TGNA indicate positive momentum, with one upward revision in the last two months, raising the consensus estimate from $1.61 to $1.66.
AI Investment Opportunities: The article highlights an upcoming wave of AI investments, suggesting that early investors could benefit significantly, while also pointing out that the initial surge in AI stocks may soon stabilize.
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- Trump's Stance Reversal: Trump endorsed Nexstar's $6.2 billion acquisition of Tegna on social media, reversing his November opposition, stating that the deal would enhance competition and help combat fake news, highlighting his concern over media competition dynamics.
- Transaction Scale and Impact: Following the acquisition, Nexstar will own over 200 stations, reaching approximately 80% of U.S. households, with the deal expected to close in the second half of 2026, further solidifying Nexstar's leadership in the broadcast news sector.
- Regulatory Challenges: The deal requires approval from the Federal Communications Commission to lift the 39% household reach cap, reflecting the critical impact of regulatory policies on the success of media industry consolidations.
- Financial Metrics Overview: Nexstar has a market capitalization of $6.71 billion, with a 52-week high of $223.43 and a low of $141.66; Tegna's market cap stands at $3.07 billion, with a 52-week high of $21.35 and a low of $14.87, indicating differing market performances and potentials for both companies.
- Trump's Endorsement: Trump publicly supports Nexstar's $6.2 billion acquisition of Tegna on social media, emphasizing that it will enhance competition and combat 'fake news,' indicating a significant shift in his stance on media consolidation.
- Deal Size and Coverage: Through this acquisition, Nexstar will add 64 TV stations, covering approximately 80% of U.S. households, thereby strengthening its position in the media market and enhancing its competitive edge against Big Tech.
- Regulatory Challenges: For the deal to proceed, Nexstar must have the Federal Communications Commission (FCC) lift the restriction on companies owning stations that reach more than 39% of households, which poses a potential hurdle for the transaction's completion.
- Industry Consolidation Trend: This acquisition is part of a broader trend of media consolidation, with Nexstar's CEO stating that broadcast news is essential for democracy, and the acquisition will position the company favorably in competition with large tech firms.
- Trump's Endorsement: Trump expressed his support for Nexstar's $6.2 billion acquisition of TEGNA on social media, asserting that the deal would enhance competition and help combat 'Fake News,' thereby improving the overall quality and transparency of the media industry.
- Deal Context Analysis: This acquisition aims to strengthen Nexstar's competitive position in the media market by integrating resources and enhancing content quality, particularly in the face of increasing market competition and regulatory uncertainties.
- Market Reaction Expectations: Trump's backing may alleviate market concerns regarding the deal, boosting investor confidence and potentially attracting more capital to Nexstar, which could drive its stock price higher.
- Industry Competitive Landscape Shift: Upon completion of the acquisition, Nexstar will be able to expand its influence nationwide, enhancing its status in mainstream media, which may trigger a wave of consolidation among other media companies, reshaping the industry landscape.
- Award Recognition: TEGNA's WXIA (11Alive) received the 2026 Alfred I. duPont-Columbia University Award for its investigative report 'Help That Harms,' highlighting its excellence in broadcast journalism and its critical role in exposing child abuse allegations.
- Investigative Impact: The investigation uncovered a troubling pattern where parents bringing infants to the ER were often accused of abuse, leading to the passage of 'Ridge's Law' in Georgia, which legally empowers parents to seek a second medical opinion, enhancing the transparency of the child welfare system.
- Systemic Reforms: Findings from the report prompted the Georgia Department of Family and Children Services to improve its review processes for abuse cases, increasing oversight and consistency, thereby ensuring better protection for families and demonstrating the power of journalism in driving social change.
- Team Efforts: The dedicated work of the 11Alive team, through rigorous investigation and courageous reporting, sparked statewide dialogue and empowered families and physicians to challenge questionable abuse allegations, reflecting the journalists' commitment to serving their communities and holding institutions accountable.
- Video Consumption Surge: TEGNA's new mobile app saw video plays increase by over tenfold during testing, with user sessions rising by 40%, indicating strong demand and engagement for real-time local news.
- 24/7 Newsroom Transformation: By transforming local stations into 24/7 story-first newsrooms, TEGNA enhances the speed and accuracy of news delivery, thereby increasing user trust and connection to their communities.
- Personalized User Experience: The new app features a personalized home feed that allows users to quickly access the most important local news and weather based on their interests and location, boosting user retention and satisfaction.
- Technology-Driven Content Creation: TEGNA reimagined the software powering local teams, leveraging cutting-edge technology to free up more time for original content creation, ensuring true 24/7 news coverage across all screens.
- Dillard's Stock Performance: Between December 2020 and December 2025, Dillard's shares surged over 1200%, outperforming the S&P 500, Nvidia, and Bitcoin, showcasing its strong post-pandemic recovery and market competitiveness.
- Dividend Policy Advantage: With a 15-year track record of dividend growth averaging 12.9% annually over the past five years, combined with a forward yield of 4.8%, Dillard's is expected to continue delivering solid capital returns in the future.
- Nexstar's Profitability: As the largest owner of broadcast television stations in the U.S., Nexstar has successfully enhanced profitability through aggressive cost-cutting, currently boasting a forward dividend yield of 3.5% and a payout ratio of only 45%, providing ample cash flow for future acquisitions and debt repayment.
- Target's Turnaround Potential: Target's stock has rallied over the past year, with a forward yield of 4.1% and a payout ratio nearing 60%, while its 57 years of consecutive dividend growth, coupled with pressure from activist hedge funds, may further enhance management's turnaround efforts, positively impacting share price and dividend growth prospects.









