Core Insights - Major U.S. stock market indices closed positively on January 9, 2026, following December jobs data, with unemployment rate decreasing to 4.4% but job additions missing expectations [1] Group 1: Market Trends - Investors are shifting towards dividend-growth stocks due to a preference for quality and visibility amid economic uncertainty, as these stocks signal robust cash flows [2][9] - Stocks with a strong history of year-over-year dividend growth are seen as better investments for capital appreciation compared to simple dividend-paying stocks [3][6] Group 2: Characteristics of Dividend Growth Stocks - Dividend growth stocks belong to mature companies, providing a hedge against market volatility and economic uncertainty while offering downside protection through consistent payout increases [4] - These stocks typically exhibit superior fundamentals, including sustainable business models, profitability, rising cash flows, good liquidity, and strong balance sheets [5] Group 3: Selected Dividend Growth Stocks - Woodward Inc. (WWD): Expected revenue growth of 11.2% for fiscal 2026, long-term earnings growth rate of 15.20%, and annual dividend yield of 0.35% [10][11] - Cardinal Health (CAH): Projected revenue growth of 16.2% for fiscal 2026, long-term earnings growth rate of 13.90%, and annual dividend yield of 1.02% [12] - Fox Corp. (FOX): Anticipated revenue growth of 3.6% for fiscal 2027, long-term earnings growth rate of 10.10%, and annual dividend yield of 0.84% [13] - Kinross Gold (KGC): Expected revenue growth of 11% for fiscal 2026, long-term earnings growth rate of 36.5%, and annual dividend yield of 0.45% [14] - Donaldson (DCI): Projected revenue growth of 3.5% for fiscal 2026, long-term earnings growth rate of 10%, and annual dividend yield of 1.26% [15]

Core Viewpoint - Fox Corporation is a leading multinational mass media company with a market capitalization of $29.49 billion, specializing in TV broadcasting, cable news networks, sports content, and streaming platforms like Tubi [1] Financial Performance - Fox is expected to report a profit of $0.49 per diluted share for Q2 of fiscal 2026, reflecting a 49% decline year-over-year [2] - For the full fiscal year 2026, analysts predict a 6.7% annual drop in diluted EPS to $4.46, followed by a 13% year-over-year improvement to $5.04 in the next fiscal year [3] Stock Performance - Over the past 52 weeks, Fox's stock has increased by 42.5%, and by 31.2% over the past six months, outperforming the broader S&P 500 Index, which rose by 17.7% and 11.2% during the same periods [4] - Compared to its sector, represented by the State Street Communication Services Select Sector SPDR ETF, which increased by 21.2% over the past 52 weeks and 10.1% over the past six months, Fox has also outperformed [5] Recent Earnings Results - In the first quarter of fiscal 2026, Fox reported a revenue increase of 4.9% year-over-year to $3.74 billion, driven by a 2.5% rise in distribution revenues to $1.92 billion and a 6.2% increase in advertising revenues to $1.41 billion [6] - The company's adjusted EPS grew by 4.1% from the prior-year period to $1.51, with stock gaining 8.2% intraday following the earnings announcement [7]

Core Viewpoint - The media industry is heavily influenced by broadcasting rights, which are controlled by a limited number of players, highlighting the competitive landscape and the significance of rights acquisition in driving value [1]. Group 1: Industry Insights - The challenge posed by Main Street Sports Group in the media industry indicates a shift in competitive dynamics, suggesting potential disruptions to established players like FOX Corporation [1]. - The research team emphasizes the importance of identifying market inefficiencies and undervalued opportunities within the media sector to generate long-term investment returns [1]. Group 2: Investment Approach - The investment strategy combines top-down macroeconomic themes with bottom-up fundamental analysis to create robust investment theses based on attractive valuations [1]. - Valuation methods employed include both extreme bear and conservative bull cases, which aim to provide a margin of safety for investors, ensuring consistent risk-adjusted returns [1].

Group 1: Fox and Flutter's FanDuel - Fox has the option to acquire an 18.6% stake in Flutter's FanDuel, which holds over 30% market share in U.S. sports betting [2][3] - The option originated from Fox's 2019 investment in The Stars Group, which was later folded into FanDuel after Flutter's acquisition [3] - CEO Lachlan Murdoch confirmed Fox's intention to exercise the option, with a potential FanDuel valuation around $35 billion [4] Group 2: Market Reactions and Other News - Analysts view the FanDuel option as a hidden asset value for Fox, with varying opinions on the timing for exercising the option [5] - LifeMD and GoodRx stocks rose after adding Novo Nordisk's Wegovy weight-loss pill to their offerings, priced at $149 per month [5] - Samsung and SK hynix are expected to raise server memory prices by up to 70% in Q1 due to increased AI demand [6]

Core Viewpoint - Fox Corporation is being considered for a long recommendation as the company shows potential for growth and investment opportunities as 2025 approaches [1] Group 1: Company Analysis - The analyst has been observing Fox Corporation for several years and has recently become more confident in recommending a long position [1] - A fresh evaluation of Fox Corporation is being conducted in light of the upcoming end of 2025, indicating a strategic reassessment of the company's prospects [1]

Core Viewpoint - Fox Corporation is being considered for a long recommendation as the company shows potential for growth and investment opportunities as 2025 approaches [1] Group 1: Company Analysis - The analyst has been observing Fox Corporation for several years and has recently become more confident in recommending a long position [1] - The analysis indicates a fresh look at Fox Corporation's performance and prospects as the end of 2025 nears [1]

Core Viewpoint - Fox Corporation (FOX) has shown strong stock performance, with a 9.7% increase over the past month and a 42.4% gain since the start of the year, outperforming both the Zacks Consumer Discretionary sector and the Zacks Broadcast Radio and Television industry [1] Financial Performance - In the last earnings report on October 30, 2025, Fox reported an EPS of $1.51, exceeding the consensus estimate of $1.06 [2] - For the current fiscal year, Fox is expected to post earnings of $4.46 per share on revenues of $15.99 billion, reflecting a -6.69% change in EPS and a -1.93% change in revenues [3] - For the next fiscal year, the company is projected to earn $5.03 per share on revenues of $16.55 billion, indicating a year-over-year change of 12.71% in EPS and 3.55% in revenues [3] Valuation Metrics - Fox has a Value Score of A, a Growth Score of B, and a Momentum Score of D, resulting in a VGM Score of A [6] - The stock currently trades at 14.6X current fiscal year EPS estimates, slightly below the peer industry average of 15.1X, and at 11.2X on a trailing cash flow basis compared to the peer group's average of 5.2X [7] - The PEG ratio stands at 1.44, positioning Fox favorably among value investors [7] Zacks Rank - Fox holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - The stock meets the criteria for selection, as it has a Zacks Rank of 1 or 2 and Style Scores of A or B, suggesting potential for further price appreciation [8] Competitive Position - Fox Corporation's shares have been performing well, and it remains a solid choice within the industry, alongside its peer FOXA, which also has a Zacks Rank of 2 (Buy) and strong value and growth scores [9] - FOXA is expected to post earnings of $4.42 per share on revenues of $16.09 billion for the current fiscal year, having beaten consensus estimates by 42.45% in the last quarter [10]

Core Viewpoint - Newsmax, despite having over 50 million regular viewers in the U.S., faces significant competition and challenges in the market, particularly from larger players like Fox Corp, and is predicted to underperform compared to other stocks in the next five years [1][2]. Group 1: Newsmax Overview - Newsmax has a market capitalization of approximately $1.1 billion and has recently expanded into Europe and the Middle East, which may increase its audience [1][2]. - The company reported a net loss of $4.1 million in the third quarter of 2025, indicating ongoing profitability challenges [7]. Group 2: Competitor Analysis - Fox Corp - Fox Corp, Newsmax's largest competitor, has a market cap of nearly $31 billion, significantly larger than Newsmax's [4]. - In the latest quarter, Fox reported a profit of $690 million, while Newsmax's revenue growth is in low single-digit percentages [7]. - Fox's shares have a price-to-sales ratio of 1.8, which is more attractive compared to Newsmax's forward sales multiple of 6 [7]. Group 3: Competitor Analysis - Mirum Pharmaceuticals - Mirum Pharmaceuticals has a market cap of around $4 billion and reported a revenue increase of 47% year-over-year in the third quarter, driven by its liver disease drug Livmarli [8][9]. - The company is optimistic about its pipeline, including potential blockbuster drugs and plans to acquire Bluejay Therapeutics, which could enhance its portfolio [11][12]. Group 4: Competitor Analysis - The Trade Desk - The Trade Desk, a leading advertising technology company, has a market cap of $19 billion and is expected to outperform Newsmax in the long term [13][15]. - The Trade Desk's growth opportunities are bolstered by the rise of ad-supported connected TV and international market expansion [15].

Core Insights - TikTok is expanding its short-form entertainment offerings by introducing "Minis," which allows users to watch micro dramas within the app [1][2] Group 1: TikTok's New Feature - TikTok has launched a Minis section that includes mini games and mini drama apps, designed for mobile-first consumption with multiple short episodes [2] - The new feature aims to reduce friction for users by enabling them to sample episodes directly in the app before making any external purchases [2][3] - TikTok views Minis as an extension of its successful TikTok Shop, keeping user engagement and transactions within its ecosystem [3] Group 2: Monetization Strategy - Micro dramas typically follow a freemium model, allowing viewers to watch a limited number of episodes for free before requiring payment, often around $10 or more per title, or a subscription fee ranging from $40 to $80 per month [4] - Within TikTok Minis, some apps provide discounts for users who pay directly through TikTok, promoting in-app purchases over external downloads [4] Group 3: Industry Impact - The market for short-drama apps is projected to generate $3 billion in global revenue this year, excluding China, indicating significant growth potential [5] - Major entertainment studios are closely monitoring this trend, with Fox Corp. investing in micro-drama startups and Walt Disney Co. exploring adaptations for vertical formats [5] Group 4: Regulatory Developments - ByteDance is taking steps to transfer control of TikTok's U.S. operations to a consortium led by Oracle Corp. to mitigate regulatory risks and prevent a potential ban [6][7] - This move aims to address concerns regarding user data access by the Chinese government, which ByteDance has consistently denied [7]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Fox (FOXA) - Fox currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3] - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4] Price Performance - Over the past week, FOXA shares increased by 0.94%, while the Zacks Broadcast Radio and Television industry declined by 1.71% [6] - In the last month, FOXA's price rose by 9.26%, outperforming the industry's 4.07% [6] - Over the past quarter, FOXA shares increased by 17.37%, and over the last year, they gained 44.9%, compared to the S&P 500's increases of 2.85% and 17.84%, respectively [7] Trading Volume - FOXA's average 20-day trading volume is 3,644,179 shares, which serves as a bullish indicator when the stock is rising with above-average volume [8] Earnings Outlook - In the past two months, 6 earnings estimates for FOXA have been revised upwards, raising the consensus estimate from $4.20 to $4.42 [10] - For the next fiscal year, 5 estimates have also moved higher, with no downward revisions [10] Conclusion - Given the strong performance metrics and positive earnings outlook, FOXA is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling option for near-term investment [11][12]