New York-based Fox Corporation (FOXA), with a market cap of $21 billion, dominates U.S. news, sports, and entertainment through its dynamic segments: Cable Networks, Television, Credible, and FOX Studio Lot. From licensing riveting news and sports to driving digital innovation with Tubi, Fox crafts compelling narratives. Founded in 2018, it blends tradition and tech, delivering powerhouse productions and financial services while redefining media’s edge.
Shares of Fox Corporation have outperformed the broader market over the past year. The stock has gained 49.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 30.4%. In 2024, FOXA is up 53.8%, lagging SPX’s 23.1% rise on a YTD basis.
Narrowing the focus, FOXA has outperformed the Invesco Dynamic Leisure and Entertainment ETF (PEJ). The exchange-traded fund has gained 31.9% over the past 52 weeks and 23.1% on a YTD basis, trailing behind the gains of the media giant.
FOXA outshined the broader market, driven by strategic investments in premium streaming, Tubi, and live sports content. Tubi’s ad-supported model attracted a growing audience, boosting revenues, while Fox’s partnerships with major sports leagues secured steady viewership. Cost-cutting initiatives and a focus on digital innovation further strengthened margins. Amid a dynamic media landscape, Fox leveraged its brand strength and niche dominance to capture market share, rewarding investors with resilient performance.
Shares of cable news and media networks jumped 2.7% after the company unveiled a stronger-than-anticipated fiscal Q1 2025 earnings on Nov. 4, igniting investor enthusiasm. With topline surging 11.1% annually to $3.56 billion, driven by affiliate revenue climbing 6% due to a 10% rise in television revenue, the company proved its mettle.
Advertising revenue soared 11%, fueled by political ad spending and the draw of election-season content. Its adjusted EPS surged 33% annually to $1.45, exceeding forecasts by 29.5%. Tubi, alongside the excitement of major sports broadcasts like the UEFA European Championship, added to the momentum. Strong ratings, smart ad optimization, and relatable programming revealed Fox’s winning formula.
The market quickly caught on. Over the subsequent two trading sessions, FOXA rallied 5.7% as analysts raised their price targets, recognizing Fox’s knack for monetizing growth across its platforms. In fact, the stock has recently hit its all-time high of $47.59. The ascent underscores its mastery of blending news, entertainment, and sports into a compelling media empire narrative.
For the current fiscal year, ending in June 2025, analysts expect Fox’s adjusted EPS to grow 14.9% to $3.94. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 22 analysts covering FOXA stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings and 13 “Holds.”
This configuration is slightly less bullish than three months ago, with 10 analysts advising a “Strong Buy.”
On Nov. 5, Wells Fargo (WFC) analyst Steven Cahall raised its price target on FOXA to $49 from $46, keeping an “Overweight” rating. The firm notes Fox is poised to take its sports into streaming accretive, viewership is solid, and there are longer-term options around consolidation plus sports betting. Wells views it as perhaps the best risk-adjusted media name.
Meanwhile, Goldman Sachs (GS) lifted the target price from $46 to $51 – also the Street-high - maintaining its “Buy” rating on FOXA. The raised target price implies an upside potential of 11.7%.
The stock currently trades above the mean price target of $44.83.
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