Core Insights - Fox Corporation (FOXA) is scheduled to report its fourth-quarter fiscal 2025 results on August 5, with earnings estimated at $1.01 per share, reflecting a 12.22% increase year-over-year, and revenues projected at $3.11 billion, indicating a 0.48% growth from the previous year [1][9]. Group 1: Recent Performance - The company has consistently exceeded the Zacks Consensus Estimate in the last four quarters, with an average surprise of 25.94% [2]. - In the third quarter, Fox reported revenues of $4.37 billion, a 27% increase year-over-year, primarily driven by Super Bowl LIX advertising and digital growth at Tubi [3][9]. Group 2: Strategic Developments - Positive developments include the launch of Fox One, a direct-to-consumer streaming service, and the introduction of the AI-driven OneFOX media platform, enhancing digital advertising capabilities [4]. - Tubi added eight million new users on Super Bowl day and achieved 35% year-over-year revenue growth in the third quarter [4]. Group 3: Challenges Ahead - The upcoming quarter may face challenges due to the absence of a Super Bowl broadcast, making year-over-year advertising comparisons difficult [6][9]. - In the third quarter, net income attributable to Fox stockholders decreased to $346 million from $666 million in the prior year, attributed to higher sports programming costs and content investments [6].

Core Insights - Fox has acquired a 33% stake in Penske Entertainment, which owns the Indianapolis Motor Speedway and IndyCar, marking a strategic investment aimed at fostering growth for IndyCar and extending Fox Sports' media rights deal [1][4] - The partnership is expected to enhance IndyCar's visibility and engagement through innovative racing events, a stronger digital strategy, and improved promotion for drivers [4][5] - The Indianapolis 500 broadcast on Fox achieved an average of 7.01 million viewers, a 41% increase from the previous year, indicating a significant rise in IndyCar's viewership [8] Investment and Partnership Details - The investment is characterized as a strategic partnership to drive new growth for IndyCar, including a multi-year extension of Fox Sports' media rights [1][4] - Fox Sports is in its inaugural season broadcasting IndyCar, with all races aired on Fox, making it the only series in the U.S. not broadcast on cable [6][8] Leadership and Future Vision - Eric Shanks, CEO of Fox Sports, expressed enthusiasm about joining the IndyCar ownership group, emphasizing the sport's potential for storytelling and fan engagement [2][5] - Roger Penske highlighted the long-standing trust and shared vision between Fox and Penske Entertainment, indicating a commitment to the sport's growth trajectory [5] Viewership Trends - IndyCar has seen a 31% year-over-year increase in viewership this season, reflecting a positive trend in audience engagement [8]

Market Overview - The market capitalization of major US stocks shows varied performance, with Oracle at 762.30 billion, Mastercard at 321.36 billion, and Visa at 770.15 billion, reflecting increases of +0.66%, +0.86%, and +0.68% respectively [3] - Exxon Mobil's market cap is 679.53 billion, with a slight decrease of -0.98%, while Johnson & Johnson and Netflix show minor changes of -0.08% and -0.05% respectively [3] - Companies like Wells Fargo and Cisco have market caps of 270.15 billion and 279.59 billion, with respective increases of +0.98% and -0.58% [3] Notable Stock Movements - T-Mobile US Inc experienced a significant increase of +6.20%, reaching a market cap of 272.19 billion [3] - General Electric and Coca-Cola saw market caps of 285.05 billion and 298.76 billion, with increases of +0.37% and +0.91% respectively [3] - Companies like Disney and Goldman Sachs have market caps of 229.06 billion and 221.80 billion, with slight changes of +0.01% and -0.60% [3] Sector Performance - The technology sector shows mixed results, with Intel at 991.05 billion, down -3.28%, while AMD increased by +2.46% to 254.92 billion [5] - The consumer goods sector is represented by companies like Procter & Gamble and Coca-Cola, with market caps of 371.68 billion and 298.76 billion, showing slight increases [3][4] - The energy sector, represented by Exxon Mobil and Chevron, shows varied performance, with Exxon down -0.98% and Chevron up +0.66% [3] Summary of Key Companies - Oracle's market cap stands at 762.30 billion, reflecting a positive trend [3] - Mastercard and Visa show strong performance with market caps of 321.36 billion and 770.15 billion, both increasing [3] - Companies like Pfizer and Comcast have market caps of 1579.81 billion and 1332.00 billion, with Pfizer showing minimal change and Comcast down -3.16% [4][5]

Market Capitalization Summary - Oracle has a market capitalization of 806.88 billion, while Visa stands at 655.99 billion [2] - Procter & Gamble has a market capitalization of 378.02 billion, and ExxonMobil is at 512.70 billion [2] - Mastercard's market capitalization is 470.87 billion, and Bank of America is at 375.11 billion [2] - UnitedHealth has a market capitalization of 308.53 billion, while ASML is at 310.77 billion [2] - Coca-Cola's market capitalization is 295.75 billion, and T-Mobile US Inc is at 273.60 billion [2] Stock Performance - Oracle's stock increased by 0.46 (+0.47%), while Visa's rose by 0.47 (+0.13%) [2] - Procter & Gamble's stock saw a slight increase of 2.68 (+0.48%), while ExxonMobil's stock increased by 1.92 (+1.20%) [2] - Mastercard's stock increased by 1.46 (+1.35%), and Bank of America's stock rose by 3.15 (+2.06%) [2] - UnitedHealth's stock decreased by 11.21 (-1.40%), while ASML's stock increased by 0.93 (+1.31%) [2] - Coca-Cola's stock increased by 14.05 (+4.50%), and T-Mobile US Inc's stock rose by 3.31 (+1.39%) [2] Additional Company Insights - McDonald's has a market capitalization of 212.78 billion, while AT&T is at 207.73 billion [3] - Uber's market capitalization is 192.79 billion, and Verizon's is at 184.08 billion [3] - Caterpillar's market capitalization is 183.87 billion, while Qualcomm is at 174.99 billion [3] - BlackRock has a market capitalization of 163.25 billion, and Citigroup is at 161.13 billion [3] - Boeing's market capitalization is 158.16 billion, while Pfizer is at 142.36 billion [3] Recent Market Movements - Intel's stock increased by 0.45 (+1.99%), while Dell Technologies rose by 0.82 (+0.16%) [4] - Rio Tinto's market capitalization is 746.07 billion, and Newmont is at 654.78 billion [4] - General Motors has a market capitalization of 494.87 billion, while Target is at 472.00 billion [4] - Ford's market capitalization is 451.14 billion, and Valero Energy is at 432.26 billion [4] - Vodafone's market capitalization is 241.45 billion, while Pinterest is at 270.30 billion [5]

Core Viewpoint - Fox (FOXA) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often adjust their valuations based on changes in earnings estimates, leading to significant stock price movements [4]. Recent Performance and Outlook - Fox is projected to earn $4.52 per share for the fiscal year ending June 2025, with no year-over-year change, but analysts have raised their estimates by 2.6% over the past three months [8]. - The upgrade reflects an improvement in Fox's underlying business, which is expected to drive the stock price higher as investors recognize this trend [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Fox's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9][10].

Core Insights - Fox Corp. has acquired Caliente TV, a Mexican sports broadcasting platform, to enhance its sports programming and attract more customers to its streaming services [1] - The acquisition is part of Fox's strategy to build a leading sports streaming business in Mexico, leveraging a strong sports rights portfolio and exclusive leagues [2] - Streaming has overtaken traditional broadcast and cable TV viewing, intensifying competition among services to acquire compelling programming [2] Company Strategy - Carlos Martinez has been appointed as executive vice president and managing director of Latin America, emphasizing the company's commitment to sports streaming [2] - Fox plans to launch its direct-to-consumer streaming service, Fox One, later this year, in addition to owning Tubi, a free ad-supported streaming service [3] - The acquisition will expand Fox's portfolio of original sports content, which already includes rights to major leagues such as the Big Ten Conference, United Football League, Premier League, and FA Cup [3]

Company Overview - Fox shares have lost about 0.9% in the past month, underperforming the S&P 500 [1] - The consensus estimate for Fox has shifted downward by 10.02% over the past month [2] Performance Metrics - Fox has a Growth Score of B and a Momentum Score of C, but an A grade on the value side, placing it in the top 20% for this investment strategy [3] - The aggregate VGM Score for Fox is A, indicating strong overall performance across multiple investment strategies [3] Outlook - Estimates for Fox have been trending downward, with a Zacks Rank of 2 (Buy), suggesting an expectation of above-average returns in the coming months [4] - Sirius XM, a competitor in the same industry, reported revenues of $2.07 billion for the last quarter, reflecting a year-over-year decline of 4.4% [5] - Sirius XM's earnings per share (EPS) for the last quarter was $0.59, down from $0.70 a year ago, and it is expected to post earnings of $0.80 per share for the current quarter [6]

Core Insights - The streaming content industry is characterized by a competitive landscape where companies are investing heavily in exclusive content to differentiate themselves and capture market share [4] Company Summaries Netflix Inc. (NFLX) - NFLX exceeded the Zacks Consensus Estimate for earnings in Q1 2025, maintaining strong engagement levels despite economic challenges [7] - The launch of the Ad Suite in the U.S. is expected to drive subscriber and ARPU growth, with plans for international expansion in Q2 [8] - NFLX's expected revenue and earnings growth rates for the current year are 14% and 27.7%, respectively, with a 3% improvement in earnings estimates over the last 60 days [11] Roku Inc. (ROKU) - ROKU's streaming hours increased by 82% year-over-year, and its OS is the top-selling TV platform in the U.S. [9][12] - The Roku Channel reached approximately 145 million U.S. households, maintaining a strong position in terms of reach and engagement [12] - ROKU's expected revenue and earnings growth rates for the current year are 10.5% and 80.9%, respectively, with a 10.5% improvement in earnings estimates over the last 30 days [13] Fox Corp. (FOXA) - FOXA reported strong fiscal Q3 results driven by increased affiliate fees and digital monetization at FOX News Media [14] - The company's political ad revenues are strengthening pricing across its news and sports brands, with popular primetime content attracting advertisers [15][16] - FOXA's expected revenue and earnings growth rates for the current year are 15.2% and 31.8%, respectively, with a 1.6% improvement in earnings estimates over the last 30 days [17]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Fox (FOXA) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Group 1: Earnings Growth - Historical EPS growth for Fox is 9.9%, but projected EPS growth for this year is 31.7%, surpassing the industry average of 29.7% [5]. Group 2: Asset Utilization - Fox has an asset utilization ratio (sales-to-total-assets ratio) of 0.71, indicating it generates $0.71 in sales for every dollar in assets, compared to the industry average of 0.58 [6]. Group 3: Sales Growth - The company's sales are expected to grow by 15.2% this year, significantly higher than the industry average of 0% [7]. Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Fox have been revised upward, with the Zacks Consensus Estimate increasing by 1.5% over the past month [8]. Group 5: Overall Positioning - Fox has achieved a Growth Score of B and a Zacks Rank of 2, positioning it well for potential outperformance in the growth stock category [10].

Investment Ratings - Walt Disney Co. (DIS): Buy-rated with a 12-month price target of $148 [27] - Fox Corp. (FOXA): Buy-rated with a 12-month price target of $61 [29] - Comcast Corp. (CMCSA): Buy-rated with a 12-month price target of $40 [30] - Warner Bros. Discovery Inc. (WBD): Neutral-rated with a 12-month price target of $10.50 [32] - Paramount Global (PARA): Not Rated [34] Core Insights - The report highlights a significant decline in traditional TV viewership, with prime time commercial ratings for broadcast (excluding sports) down 16% year-over-year in 2Q25-to-date [2] - Streaming viewership has reached an all-time high of 44.3%, with YouTube achieving a record share of 12.4% [6][10] - Cable viewership has also seen a slight increase, driven by sports and news programming, with cable share rising to 24.5% [8][9] Summary by Sections TV Viewership Trends - Streaming's share of total TV viewership increased by 0.5 percentage points month-over-month to 44.3% in April 2025 [6][10] - Broadcast share increased by 0.3 percentage points to 20.8%, driven by events like the Men's NCAA Basketball Championship [7][9] - Cable share rose by 0.5 percentage points to 24.5%, supported by strong sports viewership [8][9] Company Performance - In 2Q25-to-date, total day ratings for major networks declined significantly: DIS (-28%), PARA (-30%), WBD (-27%), CMCSA (-32%), while FOX saw an increase of 28% [3][4] - FOX's growth was primarily driven by a 46% increase in viewership at Fox News Channel [3][25] - The report indicates that linear TV has lost approximately 6 percentage points to streaming and other platforms year-over-year as of April 2025 [14] Valuation and Price Targets - The valuation methodologies for the companies include various EBITDA multiples, with DIS at 11X for Parks and Experiences, and FOX at 7.0X for NTM+1Y EBITDA [27][29][30] - The report emphasizes the importance of multi-channel and multi-platform distribution strategies for media companies to sustain growth in streaming engagement [6]