Analysts announce that entertainment stocks are on the rise

A boon of financial analysts are purporting that certain entertainment stocks appear to be gaining considerable monetary strength on Wall Street.

According to an article on HollywodReporter.com, "Goldman Sachs analyst Mark Wienkes on Thursday raised his view on the entertainment sector from 'neutral' to 'attractive.' And Friday morning Barclays Capital analyst Anthony DiClemente published a ranking of his favorite industry stocks that also predicted more upside ahead."

Despite a March stock revival, both analysts profess that particular entertainment stocks are still reasonably priced for acquisition and even predict an upturn in advertising now that the recession seems to be coming to a close.

"A stronger-than-anticipated rebound in national advertising -- a primary driver of fundamentals and sentiment across the group -- is the single most important factor in our updated outlook," said Wienkes. "We acknowledge what we think will be continued weak consumer spending and local advertising trends, but think these will be more than offset by rebounding national advertising, stable affiliate fee growth and solid content trends as secular disintermediation risk remains distant."

DiClemente added that the healing of the U.S. advertising market will also work to counteract the media's recognized organizational problems in 2010 and 2011.

Meanwhile, Wienkes added ahead of next week's annual Goldman Sachs Communacopia media investor conference, "Valuations in the sector are still 'attractive relative to historical levels and other market sectors.' Furthermore, Wienkes predicted that entertainment stocks will increasingly reflect fundamentals in a phase of normalization after three 'relatively distinct trading stages of "capitulation," "beta rally," and stabilization.'"

As for Wienkes's hot stock picks, he promoted and cited Time Warner as well as Viacom and while DiClemente agrees with Wienkes about Viacom, his stock preferences include Walt Disney, Discovery Communications, CBS Corp. and News Corp.