Bull of the Day: Fox Corporation (FOXA)

Zacks
01-14

Investors looking for a viable option in the portfolio in regards to growth and value may want to consider Fox Corporation's FOXA stock which lands a Zacks Rank #1 (Strong Buy) and the Bull of the Day.

As one of the premier media companies, now appears to be an ideal time to invest in Fox’s presence as a news, sports, and entertainment content provider.

To that point, the rally in Fox’s stock looks likely to continue with FOXA soaring over +50% in the last year.

Notably, this has impressively topped the broader indexes and has crushed the performances of many of its closest competitors such as Disney DIS, the owner of ABC, and Comcast CMCSA which owns NBC.


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Super Bowl Boost

Fox has reportedly sold all of its advertising slots as the primary broadcaster of the upcoming Super Bowl LIX in February. More intriguing, some brands are whispered to be paying up to a record $7 million for a 30-second advertising commercial.

The last time Fox had Super Bowl rights was in 2023 when the company generated $600 million in advertising revenue. Considering the massive boost in viewership that a Super Bowl can bring to a network, Fox’s total sales are expected to spike 12% in fiscal 2025 to what would be a record $15.63 billion versus $13.98 billion last year.

Although FY26 sales are projected to dip -2%, projections of $15.3 billion would still refect 18% growth in the last five years and be above Fox's previous record of $14.9 billion in total sales in 2023 (Super Bowl Year).


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Positive EPS Revisions

Most Importantly, in regards to profitability, Fox’s annual earnings are now expected to climb 19% in FY25 to a record $4.08 per share compared to EPS of $3.43 in 2024. Reassuringly, FY25 EPS estimates have risen over 3% in the last 30 days.

Furthermore, while FY26 EPS is projected to dip to $3.83, it’s noteworthy that estimates are up 2% in the last month.


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Fox’s Attractive Valuation

Making the positive EPS revisions more appealing is that at just under $50 a share, FOXA still trades at a very reasonable 11.8X forward earnings multiple.

Trading at a sharp discount to the benchmark S&P 500’s forward P/E valuation and its Zacks Broadcast Radio and Television Industry average, FOXA also trades beneath Disney’s 20X and is near Comcast’s 8.2X.


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Bottom Line

As the delegated network for the upcoming Super Bowl, Fox’s stock is hard to overlook at the moment and in addition to its strong buy rating has an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.

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