The market seriously under-appreciates Discovery Communications and 21st Century Fox, Nomura Securities' Anthony DiClemente told CNBC on Wednesday.
During an appearance on CNBC's "Squawk Box," DiClemente put both stocks in a tier above most other media options as he provided his three strongest plays in the sector. He also said Disney is a hot stock that should remain solid (as in "Frozen"). Disney, whose shares jumped more than 40 percent in the past year, banked on the popularity of the hit animated film.
"Taking a step back from media, these stocks have a better growth than the market," said DiClemente, a senior analyst and managing director at Nomura. "They return a lot of capital to shareholders."
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DiClemente likes the other stocks because of their global appeal and content rights. In particular, he said, Fox shows strong affiliate fee growth thanks to its broadcast rights of major sporting events.
Shares of 21st-Century Fox should hit $40—an 23 percent increase from where the stock opened Wednesday, DiClemente contends. Discovery should also see close to a 20-percent pop from current levels, he added. DiClemente put his price target on Discovery at $100 a share.
"When you look at everything that's going on with the Internet and digital media, content is king," he said.