Fox Corporation (FOXA) shares soared to a 52-week high of $41.42, reflecting a significant uptrend in the media giant's stock value over the past year. Investors have witnessed a remarkable 30.96% increase in the stock's value year-over-year, underscoring the company's strong performance and investor confidence. This surge to the 52-week high represents a key milestone for Fox Corp, as the company continues to navigate the dynamic media landscape, leveraging its diverse portfolio of news, sports, and entertainment assets to drive growth and shareholder value.
In other recent news, FOX Corp has seen several adjustments to its share price target following robust Q4 performance. Citi has increased its price target for the company's shares from $40 to $47, citing FOX Corp's option to acquire an 18.6% interest in sports betting company FanDuel as a significant value proposition. Meanwhile, Evercore ISI has raised its price target from $33 to $38, following strong Q4 results and promising developments such as the launch of the Venu Sports joint venture. CFRA also increased its price target from $35 to $38, maintaining a Hold rating.
These recent developments come after FOX Corp reported its Q4 earnings, which saw revenues falling slightly short of market consensus, but with adjusted EBITDA and EPS exceeding expectations. The company also reported a 5% increase in affiliate fees and a 2% increase in revenue for its cable-network programming division.
FOX Corp's free advertising-supported streaming platform, Tubi, continues to grow, now boasting 81 million monthly viewers. The company also announced a joint venture with Disney and Warner Bros. Discovery (NASDAQ:WBD), aiming to offer major sports leagues and events to non-subscribed streaming viewers. The streaming service, Venu Sports, is set to launch this fall with a monthly subscription price of $42.99.
InvestingPro Insights
Fox Corporation's (FOXA) financial strength and strategic maneuvers have been reflected in its stock performance, with shares reaching a 52-week high, indicative of investor optimism. In line with this, InvestingPro data highlights a robust market capitalization of $19.02 billion and a compelling P/E ratio of 12.12, suggesting that the stock might be undervalued given its near-term earnings growth. This is further substantiated by an adjusted P/E ratio for the last twelve months as of Q4 2024 at 11.67, paired with a PEG ratio that stands at a mere 0.36, pointing to potential growth at a reasonable price.
InvestingPro Tips reveal that management's aggressive share buybacks and a consistent increase in dividends for 4 consecutive years have likely contributed to the stock's allure. Additionally, the company's stock has been noted for low price volatility and is trading near its 52-week high, which aligns with the recent price surge. For readers looking to delve deeper into FOXA's performance metrics and strategic insights, InvestingPro offers a suite of additional tips, with 11 more available that could guide investment decisions.
With Fox Corporation's next earnings date on the horizon, investors will be keen to see if the company's strategies will sustain its upward trajectory. The current InvestingPro Fair Value estimate of $47.52 suggests that the stock might still have room to grow, offering a promising outlook for shareholders.
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