Fox Corporation (FOX), valued at $18.1 billion by market cap, operates in the media and entertainment industry, delivering a broad range of content across news, sports, and entertainment platforms. The New York-based company operates through key segments, including Cable Network Programming and Television, leveraging its strong brand portfolio to maintain market influence.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Fox Corporation fits this criterion perfectly, exceeding the mark. It has a strong brand presence in the news and sports broadcasting sectors, with Fox News being the top-rated national cable news channel for over 20 years. The company focuses on live and "appointment-based" content, which has helped it thrive despite declining linear television viewership, maintaining robust affiliate fees and advertising sales.
However, the entertainment titan touched its 52-week high of $39 in the last trading session. Shares of FOX are up 19.3% over the past three months, outperforming the Communication Services Select Sector SPDR ETF Fund’s (XLC) 3.5% gains over the same time frame.
In the long term, FOX is up 39% on a YTD basis, outpacing XLC’s 22.5% returns. However, shares of Fox Corporation have rallied 33.7% over the past 52 weeks, lagging behind XLC’s rise of 35.3% over the same time frame.
FOX has been trading above its 50-day moving average since mid-April and over its 200-day moving average since early May, indicating a bullish price trend.
Fox Corporation has outperformed the broader market in 2024, driven by strong demand for its Tubi streaming service and steady growth in its cable programming segments.
FOX stock soared 6.3% on Aug. 6 after announcing strong Q4 earnings results, which exceeded analyst expectations with $3.1 billion in revenue and $0.90 EPS. Additionally, with advertising revenue steady at $1.01 billion, the company is well-positioned to benefit from heightened political advertising as the presidential election approaches, reinforcing its competitive edge in the media landscape.
To emphasize the stock’s outperformance, rival News Corporation (NWSA) is underperforming FOX. Shares of NWSA have gained 32.6% over the past 52 weeks and are up 6.9% on a YTD basis.
Despite FOX's strong performance in 2024, analysts are cautiously optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from the four analysts covering the stock, and the mean price target of $41.25 reflects a premium of 7.3% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
