News Corporation (NWSA), headquartered in New York, creates and distributes authoritative and engaging content, and other products and services worldwide. Valued at $16.6 billion by market cap, the company delivers news, financial insights, entertainment, book publishing, digital real estate services, and subscription video content through influential publications like The Wall Street Journal, Barron's, The Times, The Sun, New York Post, MarketWatch, Factiva, and more.
Shares of this global media and information services leader have underperformed the broader market over the past year. NWSA has gained 12.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.7%. However, in 2025, NWSA stock is up 6%, surpassing SPX’s 3.1% rise on a YTD basis.
Narrowing the focus, NWSA’s underperformance is also apparent compared to the Communication Services Select Sector SPDR ETF Fund (XLC). The exchange-traded fund has gained about 30.4% over the past year. Moreover, the ETF’s 6.6% gains on a YTD basis outshine the stock’s returns over the same time frame.
NWSA has struggled to persistently increase demand due to the shift of consumer attention online and the internet's transformation of media consumption have disrupted traditional media, leading to its underperformance.
On Feb. 5,NWSA shares closed up marginally after reporting its Q2 results. Its adjusted EPS of $0.33 surpassed Wall Street expectations of $0.31. The company’s revenue was $2.24 billion, topping Wall Street forecasts of $2.17 billion.
For the current fiscal year, ending in June, analysts expect NWSA’s EPS to grow 32.9% to $0.93 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the nine analysts covering NWSA stock, the consensus is a “Strong Buy.”
This configuration is more bullish than a month ago, with six analysts suggesting a “Strong Buy.”
On Feb. 6, Guggenheim kept a “Buy” rating on NWSA and raised the price target to $44, implying a robust potential upside of 50.8% from current levels.
The mean price target of $37.86 represents a 29.7% premium to NWSA’s current price levels. The Street-high price target of $43 suggests an ambitious upside potential of 47.4%.
