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Week Ahead: Big Media Companies Could Show Opportunity

CBS, Time Warner, 21st Century Fox and Discovery have been feeling the pressure of 'cord cutting' and are trading at discounts ahead of their earnings this week.

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For Morningstar, I'm Jeremy Glaser and welcome to The Week Ahead, our quick take on what investors should have on their radar screens for the week starting May 2.

After a very busy earnings week, the calendar thins out a bit over the next few days. But we will still hear from a diverse group of companies.

Several media firms, including CBS, Time Warner, 21st Century Fox and Discovery Communications are on tap. These companies have been feeling the pressure of cord cutters on the pay TV ecosystem, and Morningstar analysts think several of these companies are trading at discounts to their fair value. Investors with a high risk tolerance and long time horizon may find themselves with a buying opportunity in the event of a further sell-off after earnings.

In pharmaceuticals, drug pricing and pipeline worries have been on investors' minds and will be on focus when Pfizer and Merck report.

We'll also get a glimpse into consumer strength across a number of different areas including consumer goods with firms like Kraft Heinz, Kellogg, and Clorox, and retailers like Whole Foods.

As May begins, the first read on April data is due this week.

The employment report on Friday will show if the job market can continue its gains in the face of mixed data elsewhere in the economy.

The ISM index, which measures the strength of the manufacturing sector, will also be closely watched for signs of improvement.

Other data scheduled to be released include auto sales, productivity, and factory orders.

Stay tuned to Morningstar for our take on all of these stories.

Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.