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| Company Name | Symbol | %Change |
|---|---|---|
| ALLIANCE FIB | AFOP | 10.29% |
| SONIC FOUNDR | SOFO | 8.21% |
| FLOWERS FOOD | FLO | 4.49% |
| TRI TECH HOL | TRIT | 4.41% |
| RADIANT LOGI | RLGT | 3.54% |
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News Corporation ( NWSA - Analyst Report ) is diversifying its business model by adding new revenue streams in an effort to adapt to the changing face of the multiplatform media universe. These endeavors have helped this media conglomerate to attain a new 52-week high of $27.94 on Monday, before closing at $27.56. Shares of this Zacks Rank #3 (Hold) company have generated a solid return of approximately 47.1% in the last year.
Drivers that Triggered Momentum
News Corporation is poised to benefit from increased Television revenues due to sustained growth in retransmission consent revenues and is expected to generate strong affiliate fee growth through increased rates and an enlarged subscriber base.
Management anticipates channels businesses to deliver healthy earnings growth on the back of sustained increase at Cable Networks and growth at international channels, as well as increase in advertising and affiliate revenues buoyed by FOX News, Regional Sports Networks and FX Network.
The company is also focusing on enhancing its portfolio of regional sports channels to strengthen the company’s Fox Sports Media Group’s position in the lucrative sports entertainment business, where it competes with Walt Disney Company’s ( DIS - Analyst Report ) sports coverage network, ESPN.
Moreover, News Corporation remains on track to split into two separate publicly traded publishing and media and entertainment entities. The split is expected to augur well for News Corporation, which has been in troubled waters since the revelation of the phone hacking scandal.
Stock’s Key Indicators
From the valuation perspective, News Corp. currently trades at a forward P/E of 16.22x, a discount to the peer group average of 16.90x. Moreover, the company’s return-on-equity (ROE), return on assets (ROA) and return-on-investments (ROI) of 13.6%, 6.2% and 8.6%, respectively, are higher than the peer group averages.
Other Stocks to Consider
Until any further upward revision in News Corp’s rating, other media companies worth considering include Lions Gate Entertainment ( LGF - Analyst Report ) and IMAX Corporation ( IMAX - Snapshot Report ) , which hold a Zacks Rank #1 (Strong Buy) and a Zacks Rank #2 (Buy), respectively.
Read the full Analyst Report on NWSA
Read the full Analyst Report on LGF
Read the full Analyst Report on DIS
Read the full Snapshot Report on IMAX