CNN/Money summarizes what we've all known for some time now: media conglomerates like Walt Disney, Viacom, News Corp. and Time Warner are all experiencing tough times while, at the same time, companies like Google, eBay and Yahoo have shown a surprising ability to reinvent themselves and uncover new growth opportunities. A sluggish advertising market and weaker than expected box office results for Hollywood films - these are just two of the factors why investors have soured on Big Media stocks over the past nine months (shares of these companies are down more than 11% through the first nine months of 2005). So, is there any upside potential for these media stocks?

According to CNN/Money, there just might be:

"Some professional investors are starting to think that the sell-off in the media sector has been overdone. Despite all the short-term concerns, analysts expect the four leaders to post earnings increases of at least 16 percent in 2006 and more than 10 percent annually for the next few years. Yet, the stocks all trade in a range of 16 to 21 times 2006 earnings estimates. That's only a slight premium to the broader market multiple of about 15.6 even though earnings for the S&P 500 are only expected to be up 7 percent next year and 9 percent over the next few years."