With a market cap of $16.3 billion, New York-based News Corporation (NWSA) is a global media and information services company. Operating across various segments, it delivers content and services in areas such as digital real estate, subscription video, publishing, and financial data.
Shares of News Corporation have outperformed the broader market over the past 52 weeks. NWSA has climbed 37.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 30.4%. However, in 2024, NWSA surged 16.6%, lagging behind SPX's 23.1% YTD gain.
Narrowing the focus, News Corporation stock has slightly outpaced the Communication Services Select Sector SPDR ETF Fund's (XLC) 36.4% rise over the past 52 weeks. But, the stock has lagged behind XLC's nearly 31% increase on a YTD basis.
Shares of News Corporation rose 1.2% following its Q1 2025 release on Nov. 7 due to better-than-expected earnings, with EPS of $0.21 beating estimates. Revenue growth of 3.1% year-over-year to $2.6 billion, driven by strong performances in the Digital Real Estate Services, Book Publishing, and Dow Jones segments, also contributed positively. Additionally, the company reported solid growth in digital subscriptions, particularly at Dow Jones, and continued strength in its REA Group and streaming services, further boosting investor sentiment.
For the current fiscal year ending in June 2025, analysts expect NWSA's EPS to grow 21.4% year-over-year to $0.85. The company's earnings surprise history is promising. It topped the consensus estimates in all of the last four quarters.
Among the six analysts covering the stock, the consensus rating is a “Strong Buy.”
On Nov. 12, Guggenheim raised its price target on NWSA to $40 and maintained a “Buy” rating after updating its model based on fiscal Q1 earnings and revised FY25 revenue and EBITDA forecasts of $10.4 billion and $1.7 billion, respectively.
The mean price target of $37 represents a premium of 29.3% to NWSA's current levels. The Street-high price target of $41, implies a potential upside of 48.3% from the current price levels.
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