Fox Corporation: A Media Powerhouse Surging Ahead
With a market cap of $21 billion, New York-based Fox Corporation (FOXA) is a leader in U.S. news, sports, and entertainment, operating through its dynamic segments: Cable Networks, Television, Credible, and FOX Studio Lot. Founded in 2018, the company combines traditional media with modern technology, delivering engaging content and innovative financial services.
Strong Stock Performance Outshines Market Trends
Over the past year, shares of Fox Corporation have significantly outperformed the broader market. FOXA has gained 49.8%, while the S&P 500 Index ($SPX) has increased by 30.4%. So far in 2024, FOXA is up 53.8%, outpacing the S&P 500’s 23.1% rise.
Comparison with Leisure and Entertainment Sector
Focusing on the sector, FOXA also outperformed the Invesco Dynamic Leisure and Entertainment ETF (PEJ), which has gained 31.9% over the past 52 weeks and 23.1% year-to-date, highlighting Fox’s strong position in the media industry.
Strategic Investments Boost Financial Growth
Fox’s success is attributed to strategic investments in premium streaming services like Tubi and live sports. Tubi’s ad-supported model has attracted a larger audience, increasing revenues, while partnerships with major sports leagues have secured consistent viewership. The company’s cost-cutting measures and commitment to digital innovation have further improved profit margins, positioning Fox as a strong competitor in a rapidly changing media landscape.
Q1 Earnings Surprise Joins Investor Optimism
On November 4, shares of Fox jumped 2.7% after the company reported stronger-than-expected fiscal Q1 2025 earnings. Revenue rose 11.1% year-over-year to $3.56 billion, supported by a 6% increase in affiliate revenue, largely due to a 10% increase in television revenue. Advertising revenue also soared 11%, boosted by political spending during election season.
Fox’s adjusted EPS surged 33% annually to $1.45, outpacing forecasts by 29.5%. The combination of Tubi’s growth and the excitement surrounding major sports broadcasts, such as the UEFA European Championship, laid the groundwork for this success.
Analysts React to Positive Momentum
The positive earnings report quickly gained attention in the market, leading to a 5.7% stock rally over the next two trading sessions. Analysts began raising their price targets for FOXA, recognizing the company’s ability to monetize growth across various platforms. Recently, the stock reached an all-time high of $47.59, emphasizing its impressive narrative in blending news, entertainment, and sports.
Positive Projections Ahead
For the current fiscal year ending in June 2025, analysts anticipate Fox’s adjusted EPS to grow 14.9% to $3.94. The company’s track record for beating expectations remains strong, having exceeded consensus estimates in each of the last four quarters.
Among the 22 analysts that cover FOXA, the consensus rating is a “Moderate Buy,” with nine “Strong Buy” ratings and 13 “Holds.” This position indicates a slight decline in bullish sentiment compared to three months ago when 10 analysts recommended a “Strong Buy.”
Analyst Upgrades from Wells Fargo and Goldman Sachs
On November 5, Wells Fargo (WFC) analyst Steven Cahall raised his price target on FOXA to $49 from $46, maintaining an “Overweight” rating. He highlighted Fox’s potential as a major player in the streaming sports market alongside solid viewership and opportunities for growth through consolidation and sports betting. Wells Fargo considers FOXA one of the best risk-adjusted media investments.
Meanwhile, Goldman Sachs (GS) raised its target from $46 to $51 — the highest on the Street — and keeps a “Buy” rating on FOXA. This new price target suggests a potential upside of 11.7%.
Currently, the stock is trading above the average price target of $44.83.
On the date of publication, Sristi Jayaswal 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
