After outperforming for much of the past couple of years, the top media stocks all have been absolutely mauled on fears that bundling and younger Americans “cutting the cord” will totally change the revenue outlook. The fact of the matter is, while many are going to Netflix and similar streaming sources, the big networks and programming giants are not going anywhere.

In a new research report UBS acknowledges that while ever more advertising revenue is headed toward the digital arena, broadcast TV stations and cable networks still garner a large share, and with the group reasonably cheap and still showing growth, patient investors could make some serious money.

We selected four of the media stocks that are rated Buy at UBS that have been hit hard.

Disney

This company is a top consumer media company with multiple streams of income that got absolutely hammered after earnings that were less than expected prompted a big fear that consumers are cutting the cable cord. Walt Disney Co. (NYSE: DIS) has the movie studio business poised to improve, as with accelerating theme park business. The network programming continues to drive viewerships with extensive sports programming. Most importantly, the company produces tons of content that will keep it a long-term media alternative, and it recently announced that Star Wars-themed lands will be coming to Disneyland and Disney’s Hollywood Studios at Walt Disney World Resort.

The Disney Media Networks segment operates broadcast and cable television networks, domestic television stations and radio networks and stations. It is involved in the television production and television distribution operations. Its cable networks include ESPN, Disney Channels and ABC Family, as well as UTV/Bindass and Hungama. This segment also owns eight domestic television stations. Disney also was one of 24/7 Wall St. top 10 stocks to own for the next decade.

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Disney shareholders are paid a 1.38% dividend. The UBS price target stays at $128, and the Thomson/First Call consensus target is $119.85. Shares closed most recently at $99.23.
Twenty-First Century Fox

Twenty-First Century Fox Inc. (NASDAQ: FOXA) is another top media stock to buy at UBS, and the company boasts a wide silo of cable and network programming to go along with solid movie production revenues. Combined with dominant cable news programming, and the NFL on the network stations, investors have the advantage of owning a diverse and growing company.

Many Wall Street analysts, including UBS, feel that the value of video content continues to increase even as the distribution markets mutate. Following the split from News Corp., Fox now operates a global entertainment company that is well situated to capitalize on increasing content value.

Fox investors are paid a 1.12% dividend. The UBS target price is $45, but the consensus target is $37.20. The shares closed most recently at $27.34.

Time Warner

This is a top media stock to buy at UBS and with good reason. Time Warner Inc. (NYSE: TWX) operates as a media and entertainment company in the United States and internationally through three segments: The Turner segment networks and related properties include TNT, TBS, Adult Swim, truTV, Turner Classic Movies, Cartoon Network, and CNN. The Home Box Office segment provides premium pay and basic tier television services comprising HBO and Cinemax, and it sells its original programming through DVDs, Blu-ray discs, and electronic sell-through, as well as licenses home entertainment and content to international television networks and SVOD services. The Warner Bros. segment produces, distributes and licenses television programming and feature films; distributes digital and physical home entertainment products; and produces and distributes video games, as well as licenses consumer products and brands.

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Time Warner has a spot on all three of the top over-the-top (OTT) content providers and with an absolute ton of content, the future is very bright. In broadcasting, OTT refers to delivery of audio, video and other media over the Internet without the involvement of a multiple-system operator in the control or distribution of the content.

Time Warner investors are paid a 2.01% dividend. The UBS price objective is $104, and the consensus target is $95.55. The stock closed Wednesday at $71.67.

Viacom

This is another company in a total sweet spot for content and is another top OTT provider. Viacom Inc. (NASDAQ: VIAB) creates television programs, motion pictures, short-form video, applications, games, consumer products, social media and other entertainment content. Its Media Networks segment provides entertainment content and related branded products through approximately programmed and operated 230 TV channels, including MTV, VH1, CMT, Logo, BET, Nickelodeon, Nick at Nite, Comedy Central, TV Land, SPIKE and Paramount Channel, as well as through online, mobile, and apps. Its other segment is Filmed Entertainment.

Earlier in the summer the company delighted shareholders with a very rich 21% dividend increase. Viacom has continued to reward shareholders and enhance its brands worldwide through the creation and acquisition of popular programs, new channels, successful motion pictures and other forms of entertainment, including video game offerings.

Viacom investors are paid a huge 4.15% dividend. The $75 UBS price target is higher than the consensus target of $62.98. The stock closed Wednesday at $38.61.

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The bottom line is content and audience. The forces in the market have eviscerated these top companies as if they were going out of business. While challenges from digital and streaming media will persist, the idea of everybody in the world discontinuing their cable or satellite service is absurd. Patient growth investors could do well adding these to long-term growth portfolios.

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