FOXA Rises 16.3% YTD: Should You Buy, Sell or Hold the Stock?

By Zacks Equity Research | May 21, 2025, 11:33 AM

Fox FOXA shares have gained 16.3% in the year-to-date (YTD) period, outperforming the Zacks Consumer Discretionary sector and the S&P 500 index’s growth of 5.1% and 0.3%, respectively. 

FOXA has also outperformed its Zacks Broadcast Radio and Television industry peers, including Roku ROKU, AMC Networks AMCX and Cumulus Media CMLS. In the YTD period, shares of Roku, AMC Networks and Cumulus Media have lost 4%, 34.6% and 78.3%, respectively. 

The company’s shares are riding on its Television and Cable Networking segments. It is gaining from a continued rise in Affiliate fees with a record audience share on its Fox News Channel. Fox appears as a compelling investment opportunity in 2025, driven by its strong fundamentals and long-term growth prospects. Let’s take a deeper look at the factors helping the stock.

Fox Reports Strong Financial Performance in Q3

Fox posted strong third-quarter fiscal 2025 results, highlighted by a 27% rise in total revenues and the highest free cash flow in the company’s history, which was more than $1.9 billion. This performance was supported by the Super Bowl broadcast, which brought in more than $800 million in advertising revenues, making it the most-watched telecast in U.S. history.

Fox Corporation Price and Consensus

Fox Corporation Price and Consensus

Fox Corporation price-consensus-chart | Fox Corporation Quote

Tubi, FOX’s free streaming platform, also saw impressive momentum. Its revenues jumped 35% year over year, with engagement and view time increasing steadily. FOX News remained the most-watched cable channel, boosting cable segment ad revenues by 26%. Overall, the company maintained solid performance across both traditional and digital platforms.

How Fox is Positioned for Long-Term Growth

Fox focuses its growth strategy on live content from its three core brands — FOX News, FOX Sports, and the FOX Network. Rising demand for live programming supports this approach. A large share of the company’s advertising revenues comes from live broadcasts, which face less pressure from subscription-based streaming services. Additionally, steady growth in affiliate fees is expected to support long-term revenue growth.

FOX News remains one of the most trusted and top-rated news channels in the United States, ranking #2 across all national TV networks. FOX Nation has also gained traction, offering 700 hours of original content.

Fox’s Earnings Estimate Revisions Show Upward Trend

The Zacks Consensus Estimate for FOXA’s 2025 earnings is currently pegged at $4.52 per share, which has been revised upward by 2.26% over the past 30 days. The estimate indicates year-over-year growth of 31.78%.

The consensus mark for revenues is pegged at $16.11 billion, indicating a year-over-year increase of 15.24%.

FOXA beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with the average surprise being 25.97%.

Conclusion: Buy FOXA Stock Now

Fox continues to deliver strong financial results, supported by record-setting performance in both the Television and Cable Networking segments. Its live content strategy across FOX News, Sports and the FOX Network drives consistent audience engagement and advertiser demand. With record free cash flow, growing affiliate fees, and momentum in streaming services like Tubi and FOX Nation, the company is building long-term value. Its leadership in cable news, top-tier sports coverage, and expanding digital presence underlines Fox’s resilience in a dynamic media landscape. Backed by strong fundamentals and a focused strategy, Fox appears well-positioned for continued growth and investor confidence in 2025.

FOXA currently carries a Zacks Rank #2 (Buy) and has a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Cumulus Media, Inc. (CMLS): Free Stock Analysis Report
 
AMC Networks Inc. (AMCX): Free Stock Analysis Report
 
Fox Corporation (FOXA): Free Stock Analysis Report
 
Roku, Inc. (ROKU): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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