Latest news with #MadisonSquareGardenEntertainmentCorp
Yahoo
29-04-2025
- Business
- Yahoo
Madison Square Garden Entertainment Corp. (MSGE): Among the Best Stocks to Buy According to John W. Rogers of Ariel Investments
We recently compiled a list of the 10 Best Stocks to Buy According to John W. Rogers of Ariel Investments. In this article, we are going to take a look at where Madison Square Garden Entertainment Corp. (NYSE:MSGE) stands against John W. Rogers' other stock picks. John W. Rogers Jr. is a prominent American investor and hedge fund manager who serves as the chairman, CEO, and CIO of . Rogers graduated from Princeton University in 1980 and spent two and a half years as a stock broker at William Blair. Three years later, he founded Ariel Investments, the first Black-owned mutual fund company in the United States, with $200,000 supported by family and friends. Howard University would be Ariel Investments' initial customer, with the firm receiving $100,000 to manage its endowment. The next year, the city of Chicago granted Ariel $1 million to operate a pension plan. By 2009, Ariel Investments was managing $3.3 billion in assets, which has since increased to a staggering $12.9 billion. Notably, the investor's flagship Ariel Fund's faced one of its first hurdles back on October 19, 1987, the day of the crash known as Black Monday. The next major test came after the dot-com crisis in 2000, with the Ariel Fund rebounding strongly, returning 29% that year and 14% in 2001. During the 2008 financial crisis, Rogers' investments in equities, such as real estate investment firm CBRE Group and newspaper publisher Gannett, caused the fund to lose 48% before returning 63% in 2009. Rogers appreciates patience as he looks for companies that he believes will reach their full potential in a set period of years. This strategy of scooping up value stocks, pioneered by famed investors Warren Buffett and Benjamin Graham, involves buying stocks whose worth may be undervalued by the market. Speaking on a Bloomberg Invest Conference, the investor stated that market enthusiasts might get overly focused on short-term trends, and those prepared to look three or five years ahead may still uncover opportunities. Ariel Investments remains steadfast in its belief of value investing, even within the current market climate. This confidence in its strategy was reaffirmed in the fund's Q1 2025 Investor Letter. Here is what Ariel Fund had to say: Most major U.S. indices ended the first quarter of 2025 in the red, with investors fleeing to safety as optimism for another year of U.S. outperformance driven by economic momentum and the new administration's pro-business stance was quickly replaced by tariff fears and policy uncertainty. The Magnificent Seven, which drove most of the markets gains over the last three years, led the decline, falling nearly -15%. Value bested growth and large caps held up better than their small cap brethren. International equity markets, led by Europe and China, surged—delivering their strongest quarterly outperformance versus the U.S. in 15 years. Meanwhile, deteriorating confidence and apprehension about a global trade war is fueling recession fears. While Wall Street sits on edge and markets remain erratic, we are actively leaning into the volatility by judiciously acquiring the downtrodden shares of quality companies whose value should be realized over the long term. For this list, we picked stocks from Ariel Investments' 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among elite hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Stagehands setting up the equipment for a live entertainment event. Madison Square Garden Entertainment Corp. (NYSE:MSGE), a spinoff of Sphere Entertainment Co., is a live entertainment company that organizes concerts and event entertainment experiences at well-known venues like Radio City Music Hall and Madison Square Garden. On March 12, Wolfe Research raised Madison Square Garden Entertainment Corp. (NYSE:MSGE) to Outperform from Peer Perform, noting the stock's undervaluation and solid growth potential in the live entertainment industry. The firm also set a price target of $46, citing increased revenues from the Radio City Christmas Spectacular and consistent demand at Madison Square Garden. Furthermore, with MSGE working on a six- to nine-month booking cycle, the company is projected to give insight into its 2026 event pipeline by this summer, which could increase investor confidence in its future earnings. In its 91st holiday season, Madison Square Garden Entertainment Corp. (NYSE:MSGE) sold roughly 1.1 million tickets to 200 shows, compared to over 1 million tickets sold to 193 shows the previous season. Revenue from entertainment offerings remained firm year-over-year at $318.28 million, owing primarily to reduced event-related revenues, which were significantly offset by increased revenues from the Christmas Spectacular production. In addition, food, beverage, and merchandise revenues rose 1% year-over-year to $59.3 million due to more Knicks and Rangers games at The Garden and more Christmas Spectacular performances. Overall MSGE ranks 2nd on our list of John W. Rogers' stock picks. While we acknowledge the potential for MSGE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MSGE but trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at .
Yahoo
27-04-2025
- Business
- Yahoo
Is Madison Square Garden Entertainment Corp. (NYSE:MSGE) the Most Promising Small-Cap Stock According to Analysts?
We recently published a list of the 11 Most Promising Small-Cap Stocks According to Analysts. In this article, we are going to take a look at where Madison Square Garden Entertainment Corp. (NYSE:MSGE) stands against other promising small-cap stocks. Robert Teeter of Silvercrest Asset Management recently appeared in an interview to express that he thinks small-cap stocks are currently facing a choppy market, but he also acknowledged that he anticipates a rally later in the year. Based on this sentiment, he advised clients on the importance of diversification within the S&P 500 and pointed to opportunities in international markets. We covered his stance in greater detail in one of our other articles, 10 Best Small-Cap Value Stocks to Buy Now. Here's an excerpt from it: 'He noted that the Trump trade initially boosted small caps due to expectations of economic acceleration and lower interest rates, both of which are favorable for these companies. However, policy uncertainty and weaker-than-expected economic data have delayed their rally. Teeter believes that small caps will come into their own later in the year, but for now, they are facing a choppy market with significant rotation.' However, later on March 26, Villere & Co. Portfolio Manager George Young joined 'Market Domination Overtime' on Yahoo Finance to discuss why investors should be looking at small-cap stocks. George Young stated that small caps currently appear cheap and have been underperforming relative to larger stocks. He highlighted that small-cap stocks have been inexpensive for a while. To support his stance, he pointed out that last year, the S&P 500 rose about 25%, while small-cap stocks increased by only 11%. He explained that this disparity suggests a regression to the mean at some point, which means that the valuation gap between small caps and large caps should eventually narrow. Young also noted a shift in market dynamics during Q1 of this year. While the S&P 500 was down ~2% then, the S&P 500 excluding the MAG7 stocks was actually up ~2%. He described this change as a relatively usual once, since stock market leadership often rotates between sectors and types of stocks. Young particularly favored the small-cap sector when questioned about long-term and steady investments. We sifted through the Finviz stock screener to compile a list of the top small-cap stocks that were trading between $300 million and $2 billion, and that had the highest upside potential (at least 40%). The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey's database. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Stagehands setting up the equipment for a live entertainment event. Market Capitalization as of April 23: $1.49 billion Number of Hedge Fund Holders: 46 Average Upside Potential as of April 23: 46.02% Madison Square Garden Entertainment Corp. (NYSE:MSGE) engages in the live entertainment business. It produces, presents, and hosts live entertainment events, such as concerts, sporting events, family shows, family shows, performing arts events, and special events. It also operates a collection of venues, such as Madison Square Garden and The Theater at Madison Square Garden. The Christmas Spectacular segment is a record-revenue-generating holiday show that boosted Madison Square's FQ2 2025 performance through high ticket sales and per-guest spending. In its 91st season, the show achieved record-setting results across numerous metrics and made over $170 million in total revenue, which was a new high for the production. This was fueled by the sale of ~1.1 million tickets across 200 performances, which marked the show's strongest sell-through rate in 25 years. The show also experienced year-over-year growth in average ticket yields for both individual and group sales due to strategic pricing. Guggenheim analysts reaffirmed their Buy rating on Madison Square Garden Entertainment Corp. (NYSE:MSGE) with a $48 price target. Despite recent headwinds on the stock's performance, the analysts believe that Madison Square will still generate ~double-digit growth in adjusted operating income (AOI) for 2025. Ariel Fund stated the following regarding Madison Square Garden Entertainment Corp. (NYSE:MSGE) in its first quarter 2024 investor letter, highlighting the company's strong earnings beat: 'Additionally, Madison Square Garden Entertainment Corp. (NYSE:MSGE), shares advanced in the quarter following a robust earnings beat, driven by an increase in the number of concerts held at MSGE's venues, strong demand for the Christmas Spectacular and higher per-event revenues. Notably, management raised full year 2024 guidance and reiterated its outlook to achieve a low-double-digit percentage increase in event bookings. With marquee assets such as New York's Madison Square Garden, Radio City Music Hall, Beacon Theatre and The Chicago Theater, we believe MSGE is well positioned to capitalize on strong demand for live entertainment. In our view, MSGE's assets generate stable cash flow that should enable deleveraging. At current levels, the company is trading at a significant discount to our estimate of private market value.' Overall, MSGE ranks 10th on our list of the most promising small-cap stocks according to analysts. While we acknowledge the growth potential of MSGE, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MSGE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
09-02-2025
- Business
- Yahoo
Madison Square Garden Entertainment Corp. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
As you might know, Madison Square Garden Entertainment Corp. (NYSE:MSGE) recently reported its quarterly numbers. Statutory earnings per share fell badly short of expectations, coming in at US$1.56, some 31% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$407m. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Madison Square Garden Entertainment after the latest results. View our latest analysis for Madison Square Garden Entertainment Taking into account the latest results, Madison Square Garden Entertainment's eight analysts currently expect revenues in 2025 to be US$955.1m, approximately in line with the last 12 months. Statutory earnings per share are expected to plunge 60% to US$1.06 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$960.6m and earnings per share (EPS) of US$1.92 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts. The consensus price target held steady at US$45.29, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Madison Square Garden Entertainment at US$48.00 per share, while the most bearish prices it at US$41.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Madison Square Garden Entertainment's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 1.1% annualised decline to the end of 2025. That is a notable change from historical growth of 25% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Madison Square Garden Entertainment is expected to lag the wider industry. The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Madison Square Garden Entertainment going out to 2027, and you can see them free on our platform here.. Before you take the next step you should know about the 2 warning signs for Madison Square Garden Entertainment that we have uncovered. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
