New York-headquartered Fox Corporation (FOXA), with a market cap of $18.5 billion, produces and distributes news, sports, and entertainment content. The company’s brands include FOX News, FOX Sports, the FOX Network, FOX Television Stations, FS1, FS2, Fox Deportes, and Big Ten Network.
Shares of this entertainment titan have lagged behind the broader market over the past 52 weeks. The stock has gained 17.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 26.1%. However, things are looking up for the stock in 2024, as FOXA is up 33.3%, surpassing SPX’s 16.5% rise on a YTD basis.
Narrowing the focus, FOXA has outperformed the Invesco Dynamic Leisure and Entertainment ETF (PEJ), which has surged 8.4% over the past 52 weeks. Besides, FOXA’s double-digit gains in 2024 easily outpace the ETF’s 6.8% return on a YTD basis.
On Aug. 6, Fox Corporation released its Q4 earnings report, and its stock climbed 6.7%. It exceeded Wall Street's profit expectations and reported a rise in revenue, driven by strong demand for its Tubi streaming service. The company also announced a boost to its semi-annual dividend and repurchased about $250 million of its Class A common stock in the last quarter.
For the current fiscal year, ending in June 2025, analysts expect Fox Corporation’s EPS to rise 8.5% annually to $3.72 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 23 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, 12 “Hold,” and one “Strong Sell.”
This configuration is more bullish than two months before, with eight analysts recommending a “Strong Buy.”
On Aug. 7, JPMorgan Chase & Co. (JPM) lifted Fox Corp.’s price target to $38 from $36 and maintained a “Neutral” rating. The company’s fiscal Q4 results were solid and provided positive commentary on upfronts. However, the firm remains cautious about pay TV trends and the challenges of transitioning news and sports content to digital platforms.
Although the stock currently trades above its mean price target of $39, the Street high target of $45 represents a 13.8% premium from FOXA’s 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.
