Fox FOXA has gained 16.3% year to date against the Zacks Consumer & Discretionary sector’s decline of 2.7%.
This outperformance can be attributed to its expanding content portfolio, which bodes well with the long-term prospects of the company.
This Zacks Rank #3 (Hold) company is expanding its content portfolio with a new weekly series, Here’s the Deal with Kellyanne Conway, starting on Jul 11. A new episode will be released every week through the presidential election in November. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kellyane Conway, served as a former White House counselor as well as a campaign manager to Donald Trump. She will dive into major topics affecting the election cycle, the role of independents, predictions, inflation and many more important topics.
Conway is also a co-host of the podcast The Campaign Managers with Kellyanne Conway and David Plouffe. In this podcast, the hosts provide insights regarding the latest political issues based on their past experiences in political fields.
Year-to-date Performance
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Fox’s Expanding Partner Base to Aid Top-Line Growth
Fox’s recent content expansion is complemented by some notable partnerships. These partners include The Trade Desk TTD, TIME and FreeWheel, which are expected to boost the top line in the upcoming quarters.
The Zacks Consensus Estimate for FOXA’s fiscal 2025 revenues is pegged at $15.15 billion, indicating year-over-year growth of 8.25%.
Fox recently partnered with TTD, a global advertising technological leader. The company will leverage TTD’s Unified ID 2.0 and OpenPath to provide advertisers more access to its premium inventory. This will help advertisers measure campaign results and fulfill objectives.
FOXA partnered with TIME as its first external publishing partner for Verify, the company’s open-source protocol for content verification and licensing. This partnership will help Verify beta transition into an independent zero-knowledge blockchain on Ethereum.
Fox’s partnership with FreeWheel will expand its dynamic insertion capabilities and release new co-developed targeting technology. FreeWheel’s technology will help Fox to offer dynamic ad insertion in college football. This would encourage more advertisers to buy more premium live sports inventory from Fox.
However, FOXA faces tough competition from players like Comcast CMCSA and Warner Bros. Discovery WBD in the news segment.
FOX News averaged 1.3 million total day viewers, beating CNN by 176% and MSNBC by 58%. In primetime, FOX News averaged 2 million viewers and 190,000 in 25-54 demo, garnering an advantage of 267% over CNN and 77% over MSNBC with total viewers.
Conclusion
Fox’s expanding content offerings and partner base bode well for the long-term growth of the company. However, competition remains a concern.
Rising affiliate fee revenues and third-party Fox affiliates in the television segment are a major positive.
In third-quarter fiscal 2024, affiliate fees (56.2% of the total revenues) rose 4.4% to $1.93 billion, driven primarily by 9.2% growth in the Television segment.
The Zacks Consensus Estimate for FOXA’s fourth-quarter fiscal 2024 earnings per share is pegged at 85 cents per share, which has remained unchanged in the past 60 days. The consensus mark for fiscal 2024 earnings is pegged at $3.33 per share, which has increased 15 cents in the past 60 days.
Zacks Names "Single Best Pick to Double"
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This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Comcast Corporation (CMCSA) : Free Stock Analysis Report
Warner Bros. Discovery, Inc. (WBD) : Free Stock Analysis Report
Fox Corporation (FOXA) : Free Stock Analysis Report
The Trade Desk (TTD) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
