News Corporation (NWS) is a media and information services company focused on delivering engaging content. Valued at a market cap of $15.8 billion, its business spans news, sports programming, digital real estate, book publishing, education, and pay-TV, primarily operating in the U.S., Australia, and the U.K. The company is headquartered in New York.
Companies valued at $10 billion or more are generally classified as "large-cap" stocks, and News Corporation comfortably fits this criterion, underscoring its strong market presence. It benefits from a diverse business model, covering media, book publishing, digital real estate, and subscription services, which helps mitigate risks and generate varied revenue streams.
Its strong brand lineup, including The Wall Street Journal and HarperCollins, fosters customer loyalty and boosts advertising and subscription income. Additionally, its strategic focus on digital platforms, such as Kayo and Binge, aligns with shifting consumer preferences, enhancing the company's competitive position in the media industry.
However, the leading media company is down 6.5% from its 52-week high of $29.59, achieved on Aug. 26. Shares of News Corporation have surged marginally over the past three months, underperforming the broader Nasdaq Composite's ($NASX) 1.3% gains over the same time frame.
Over the longer term, NWS stock gained 7.6% on a YTD basis, lagging behind NASX's 19.6% gains. However, shares of News Corporation have soared 35.7% over the past 52 weeks, surpassing NASX's 32.3% return over the same time frame.
While NWS has consistently traded above its 200-day moving average since the past year, it has been trading below its 50-day moving average since early September.
News Corporation released its Q4 earnings result on Aug. 8, and its shares edged up 2.9%. It exceeded estimates for revenue and profit, fueled by strong performance in its Dow Jones unit, real estate listings, and book publishing.
News Corporation’s top rival, Fox Corporation (FOXA), has soared by 29.1% over the past 52 weeks, falling behind NWS. However, FOXA’s 35.5% returns on a YTD basis surpass NWS’ single-digit gain in 2024.
NWS has a consensus rating of "Strong Buy" from one analyst covering the stock. The mean price target of $39 suggests a 40.9% upside potential from 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.
