Fox Corporation (FOX): Assessing Sustained Growth Amid a 52-Week High

Fox Corporation (FOX) has surged to a 52-week high in late 2025, defying broader industry headwinds and sparking renewed interest among investors. The stock's 42.4% year-to-date gain contrasts sharply with the Broadcast Radio and Television industry's underperformance, which ranks in the bottom 78% of all sectors. This divergence raises critical questions: How has Fox sustained its momentum in a lagging industry? Is its valuation resilient enough to justify optimism, or does the recent post-earnings dip signal caution?

Earnings Momentum: A Catalyst for Growth

Fox's Q4 2025 results underscore its ability to outperform expectations. Total revenue hit $16 billion, a 17% year-over-year increase, while earnings per share of $1.27 exceeded forecasts by 29.5%. Adjusted EBITDA rose 26% to $3.6 billion, and free cash flow reached $3 billion, reflecting disciplined cost management and operational efficiency. These figures build on a trend of consistent outperformance: In Q3 2025, Fox reported EPS of $1.51, surpassing the $1.06 consensus estimate.

The company's momentum is fueled by strategic bets. Political advertising revenue hit record levels, bolstered by an election year, while the Super Bowl broadcast delivered strong viewership and ad sales. Looking ahead, Fox anticipates further growth from its streaming platform, FOX One, and the Tubi ad-supported service, both of which are expected to drive profitability.

Valuation Resilience: A Discounted Premium

Despite these strong fundamentals, Fox's stock price fell 3.16% post-earnings, closing at $56.98. This reaction highlights a disconnect between performance and market sentiment. However, valuation metrics suggest the stock remains attractively priced. Fox trades at a forward P/E of 14.6X, below the industry average of 15.1X, and its trailing P/CF of 11.2X, though higher than the peer group average of 5.2X, reflects robust cash generation according to data.

Comparisons with industry peers reinforce this narrative. OUTFRONT Media (OUT), for instance, trades at a Forward P/E of 9.35X, significantly lower than its sector average of 15.68X according to reports. Yet Fox's Zacks Rank of #2 (Buy) and Value Score of A position it as a stronger value play, particularly given its consistent earnings surprises and superior cash flow generation according to analysis.

Industry Context: Thriving Amid a Downturn

The broader media/entertainment sector has struggled with declining ad revenues and shifting consumer habits. Traditional broadcasters face margin pressures from cord-cutting and competition from streaming giants. Yet Fox's diversified revenue streams-spanning linear TV, digital, and political advertising-have insulated it from these trends.

Political advertising, in particular, has been a tailwind. With 2024 election cycles driving unprecedented spending, Fox capitalized on its prime-time programming and news coverage to secure premium rates. Meanwhile, its streaming initiatives, including Tubi's expansion into international markets, offer long-term growth avenues. Analysts note that Fox's ability to monetize its content across platforms has created a moat in an otherwise fragmented industry.

Risks and the Road Ahead

Fox's success is not without risks. Political ad revenue is cyclical, and the next election cycle may not deliver the same windfall. Additionally, the stock's recent rally has compressed its valuation, raising questions about whether it can sustain its premium. The post-earnings dip suggests some skepticism, though this could also reflect profit-taking after a strong year.

For now, Fox's combination of earnings resilience and undervaluation makes it a compelling case study in strategic adaptation. As the media landscape continues to evolve, its ability to balance traditional strengths with digital innovation will determine whether this momentum is fleeting or foundational.