New York-based News Corporation (NWS) is a media and information services company. Valued at a market cap of $18.2 billion, the company primarily operates in the United States, Australia, and the United Kingdom and provides news and information services, sports programming services, digital real estate services and book publishing, digital education, and pay-TV distribution services.
Shares of this media company have outpaced the broader market over the past 52 weeks. NWS has rallied 40% over this time frame, while the broader S&P 500 Index ($SPX) has gained 31.3%. However, on a YTD basis, the stock has gained 24.9%, slightly lagging behind SPX’s 25.5% return.
Narrowing the focus, NWS has outperformed the Communication Services Select Sector SPDR ETF Fund’s (XLC) 37.2% gain over the past 52 weeks but has underperformed XLC’s 34% return on a YTD basis.
On Nov. 7, shares of NWS gained 1.1% after its fiscal 2025 Q1 earnings release. The company’s revenue increased 3.1% annually to $2.58 billion, while its adjusted earnings improved 31.2% year-over-year to $0.21 per share. Moreover, its net income rose by a staggering 148.3% and reached $144 million. The strong performance was primarily driven by robust growth in the Digital Real Estate Services, Book Publishing, and Dow Jones segments.
While the coverage is light, the consensus view on News Corporation stock is bullish overall, with a “Strong Buy" rating from the one analyst offering a recommendation.
On Nov. 12, Guggenheim maintained a “Buy” rating on NWS and raised its price target to $40, which indicates a modest 24.5% potential upside from the current levels. Meanwhile, the average analyst price target of $39 suggests an upside potential of 21.4% from current price levels.
