New York-based News Corporation (NWSA) is a global media and information services company with a diverse portfolio spanning news, digital real estate, book publishing, and subscription video services. Valued at a market cap of $15.6 billion, the company owns major brands such as The Wall Street Journal, Dow Jones, HarperCollins, and Realtor.com.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and News Corporation fits this criterion perfectly. News Corporation leverages a strong portfolio of globally recognized brands, giving it a competitive edge in news, publishing, and digital real estate. Its diverse revenue streams across media, digital subscriptions, and real estate services reduce reliance on any single segment. A focus on digital transformation has enhanced profitability, with a growing base of paid subscribers.
Yet, despite its strong fundamentals, NWSA shares have retreated 10.5% from their 52-week high of $30.69, met on Feb. 19. The stock has declined 2.4% over the past three months, lagging behind the Communication Services Select Sector SPDR ETF Fund (XLC), which rose marginally during the same period.
While the stock has inched up 4.1% in the past six months, it continues to trail XLC’s 10.8% surge. Over the past year, News Corporation’s 5.4% gain pales in comparison to XLC’s impressive 21.8% return.
Additionally, NWSA has dipped below its 50-day and 200-day moving averages since the start of this month, indicating a downtrend.
On Feb. 5, NWSA shares rose marginally after reporting its Q2 results. Its adjusted EPS of $0.33 surpassed Wall Street expectations of $0.31. The company’s revenue was $2.24 billion, topping Wall Street forecasts of $2.17 billion, driven by growth in its Digital Real Estate Services, Book Publishing, and Dow Jones segments. Net income from continuing operations surged 58% to $306 million.
In comparison, rival Paramount Global (PARA) has surpassed NWSA, gaining 11.3% over the past six months.
Despite NWSA's underperformance over the past year, analysts are highly bullish about the stock's prospects. The stock has a consensus rating of “Strong Buy” from the nine analysts covering it, and the mean price target of $38.14 implies an upswing potential of 38.8% from the current market prices.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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