Is Fox Corporation Stock Outperforming the S&P 500?
New York-based Fox Corporation (FOX) operates as a news, sports, and entertainment company. Valued at $23.2 billion by market cap, the company produces and licenses news, sports, and entertainment content for distribution through cable television systems, direct broadcast satellite operators, telecommunications companies, and online video distributors. It also manages broadcast studios, theaters, editing bays, sound stages, and other production facilities.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and FOX perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the entertainment industry. FOX's iconic brands, including Fox Network, Fox News, and Fox Sports, boast a strong reputation and loyal audience. Its vast content library and exclusive sports rights drive syndication, licensing, and ad revenue. By embracing digital platforms, FOX has adapted to changing media trends, ensuring continued relevance.
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Despite its notable strength, FOX slipped 7.8% from its 52-week high of $55, achieved on Mar. 3. Over the past three months, FOX stock has gained 8.8%, outperforming the S&P 500 Index’s ($SPX) 4.7% dip during the same time frame.
In the longer term, shares of FOX rose 10.9% on a YTD basis and climbed 77.4% over the past 52 weeks, outperforming SPX’s YTD losses of 3.2% and 8.5% returns over the last year.
To confirm the bullish trend, FOX has been trading above its 50-day moving average over the past year, with some fluctuations. The stock is trading above its 200-day moving average since late April, 2024.
FOX’s outperformance is driven by higher political advertising and growth in cable network programming.
On Feb. 4, FOX shares closed up more than 4% after reporting its Q2 results. Its adjusted EPS of $0.96 beat Wall Street expectations of $0.65. The company’s revenue was $5.1 billion, beating Wall Street forecasts of $4.9 billion.
FOX’s rival, News Corporation (NWS) shares lagged behind the stock, with marginal losses on a YTD basis and 11.5% gains over the past 52 weeks.
Wall Street analysts are moderately bullish on FOX’s prospects. The stock has a consensus “Moderate Buy” rating from the 13 analysts covering it, and the mean price target of $55 suggests a potential upside of 8.4% from current price levels.
On the date of publication, Neha Panjwani 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.
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