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Fox Corporation: Undervalued Entertainment Stock A Good Buy?
AInvestSaturday, Feb 1, 2025 3:18 am ET
6min read
FOXA --


Fox Corporation (FOX) has been making waves in the entertainment industry, but is it a good investment opportunity? Let's dive into the numbers and find out.



Undervalued Compared to Peers and Market

Fox Corporation's stock is currently trading at $48.60, which is significantly lower than the average price target of $47.11 set by 19 analysts. This suggests that the stock is undervalued compared to the consensus price target. Additionally, Fox's PE ratio of 12.2x is lower than the average PE ratio of its peers and the broader market, indicating that the stock is relatively cheap compared to its earnings.



Strong Analyst Ratings and Price Targets

The average analyst rating for FOXA stock from 18 stock analysts is "Buy," indicating that analysts believe this stock is likely to outperform the market over the next twelve months. The consensus price target of $47.11 suggests that analysts expect the stock to appreciate by 3.2% over the next year.

Revenue and Earnings Growth

Fox Corporation's revenue and earnings growth have been relatively stable compared to its competitors in the entertainment industry. In 2024, Fox Corporation's revenue was $13.98 billion, a decrease of -6.26% compared to the previous year's $14.91 billion. Earnings were $1.50 billion, an increase of 21.15%. While the revenue decrease may seem concerning, it is important to note that the entertainment industry is highly competitive and subject to market fluctuations.



Cancellation of Venu Sports Streaming Service

The recent cancellation of the Venu sports streaming service, a joint venture between Disney, Fox, and Warner Bros. Discovery, could have a potential impact on Fox Corporation's financial performance and stock price. The cancellation of this service may result in a decrease in revenue and earnings for Fox Corporation. However, the exact impact is difficult to quantify without specific financial details about the Venu project.

Conclusion

Based on the provided information, Fox Corporation appears to be undervalued compared to its peers and the broader market, as indicated by several key financial metrics. The company's strong analyst ratings and price targets, as well as its relatively stable revenue and earnings growth, suggest that Fox Corporation is a good investment opportunity. However, the recent cancellation of the Venu sports streaming service could have a potential impact on the company's financial performance and stock price. Investors should monitor the situation closely and consider the potential implications for Fox's future prospects.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.