Fox Corporation (FOX), valued at $17.8 billion by market cap, operates in the media and entertainment industry, delivering a broad range of content across news, sports, and entertainment platforms. The New York-based company operates through key segments, including Cable Network Programming and Television, leveraging its strong brand portfolio to maintain market influence.
Shares of this TV broadcasting company have underperformed the broader market over the past 52 weeks. FOX has gained 24.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 27%. However, FOX has outpaced in 2024, with a 37.9% rise compared to SPX’s 18.1% gain on a YTD basis.
Focusing more closely, FOX has lagged behind the S&P 500 Communication Sector SPDR’s (XLC) 31.4% gain over the past 52 weeks but has exceeded XLC’s 20.4% YTD return.
FOX has excelled in 2024 due to robust advertising revenue growth, driven by key events like the Presidential election and the Super Bowl, and continued improvements in its Television segment. Additionally, the company's ability to leverage its brand and programming effectively has contributed to its superior performance compared to peers.
Furthermore, the stock soared 6.3% on Aug. 6 due to its strong Q4 results, which exceeded analyst expectations with $3.1 billion in revenue and $0.90 EPS, driven by robust growth in its Tubi streaming platform and a 5% increase in affiliate fee revenue. Plus, positive analyst outlooks, bolstered by anticipated revenue from political advertising and the upcoming launch of Venu Sports, further fueled investor confidence.
For the current fiscal year, ending in June 2025, analysts expect FOX’s EPS to grow 4.7% year over year to $3.59. In the last quarter, FOX surpassed the consensus estimate of EPS by 3.5%.
Among the four analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on two “Strong Buy” ratings and two “Holds.”
On Aug. 12, Macquarie raised FOX's price target to $35 while maintaining a “Neutral” rating, citing stagnant advertising revenue and challenging investment conditions in the media sector.
The mean price target of $38.75 represents a premium of only 1.6% to FOX’s current levels. The Street-high price target of $45 implies a modest potential upside of nearly 18%.
On the date of publication, Sohini Mondal 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.
