This One Broadcasting Penny Stock Looks Set for a Big Year

Penny Stocks

Global markets have been under intense pressure in recent weeks as the outbreak of the Coronavirus threatens to wreak havoc on economic growth, with escalating geopolitical tensions, the impeachment trial of Donald Trump, and Britain’s departure from the EU as of Friday, further hampering any progress. It’s an intensely difficult environment to back a winner in, but that’s not to say there aren’t out there, and penny stocks might just be the best place to look.

Penny stocks trade for $5.00 or less, and while their cheap price can be hugely attractive for investors, they also come with a considerable deal of risk attached. However, the current state of the equity markets has actually helped drive some serious gains in certain penny stocks in recent weeks, and that could be set to continue as the number of Coronavirus cases tops 8,200. Here, we’ll look at one unlikely stock that could be set to benefit hugely off the back of current events.

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Entercom Communications (NYSE:ETM)

Founded in 1968, Entercom Communications is currently the second-largest radio broadcaster in the US, with over 235 stations across 48 markets. In 2017, the company was acquired by CBS Radio, bringing its total engagement reach to over 100 million per week.

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In the technologically advanced world of 2020, radio broadcasting stocks may not come across as the most glamorous of investments, and it’s pretty easy to see how they might go under the radar. However, this penny stock could be set for a huge year for one particular reason—the US Presidential Election. Entercom expects net political revenues to grow by US$20 million this year, and its $4.00 stock price is a pretty unfair reflection of the 17% earnings gain that the company reported in the last quarter.

Its app is also the fastest-growing digital audio app in the United States, with 60% year-over-year growth, and Entercom has also entered the podcast space with the purchases of Cadence13 and Pineapple Street Media for a total of US$48 million. Now, that’s a pretty tidy portfolio for a penny stock in a supposedly outdated industry.

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