Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Fox Corporation Is A Recovery Buy

By MarketBeat.com (Jea Yu )Stock MarketsSep 11, 2020 07:33AM ET
www.investing.com/analysis/fox-corporation-nasdaq-foxa-stock-is-a-recovery-buy-here-200537203
Fox Corporation Is A Recovery Buy
By MarketBeat.com (Jea Yu )   |  Sep 11, 2020 07:33AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Media network Fox (NASDAQ:FOXA) shares have been trying to recover since its pandemic meltdown in an attempt to recover back to its pre-COVID levels. While still vastly underperforming the benchmark S&P 500, the shares are staging a recovery as live sports programming starts to resume.

Fox News Digital is setting viewership records as the November Presidential elections approach. With shares still trading down (-25%) on the year, prudent investors may look for selective entries on opportunistic pullbacks as the daily stochastic makes an oscillation move down.

Q4 FY 2020 Earnings Release

On August 4, 2020, Fox released its fourth-quarter fiscal 2020 results for the quarter ending June 2020. The Company reported earnings-per-share (EPS) of $0.62 versus consensus analyst estimates for a profit of $0.57, a $0.05 per share beat.

Revenues fell (-3.8%) year-over-year (YoY) to $2.42 billion beating consensus estimates of $2.39 billion. Cable Network Programming segment saw (-2%) YoY top-line drop on lower advertising revenues partially offset by higher affiliate revenues. The Television segment saw a (-6%) decrease in YoY revenues as advertising revenues dropped (-29%) YoY. The Company declared a $0.23 per share dividend payable Oct. 7, 2020.

Conference Call Takeaways

The Company noted the pent-up demand for live sports and how FOX Sports is optimizing execution to grow efficiencies while meeting demand. NASCAR was the first major American sport to resume post-pandemic. FOX Sports adapted to minimum crews, production teams and maximum health protocols using a third of the “normal” personnel.

Incorporation of off-site production and editing teams coupled with the usage of miniature flying drones for never before seen aerial footage was widely adopted to heavy viewership traffic. In-car audio production and feature editing were produced live in technicians’ homes. The Company introduced computer generated virtual fans and enhanced crowd audio to bolster the excitement of live events where very few fans are permitted to attend due to COVID-19 safety restrictions.

Winning

The culmination of efficiency, innovation and optimization resulted in Fox regaining the title of number one broadcast network for the first time in 8 years. Fox is the only network to deliver YoY ratings gains for the 18-to-49 demographic beating out the number two network by 31%.

FOX News became the lead prime time network ahead of all broadcast networks for the month of June 2020. Record political advertising revenues helped offset some of the COVID-19 impacts in local markets. Management points out that 9 of 18 station are in lucrative presidential battleground states.

FOX News International Monthly Digital Plan

Fox News Media has launched a live digital streaming service that includes FOX News Channel and FOX Business Channel for international users at $6.99 per month. The service is aimed at international users with rollout commencing in Mexico, Spain, Germany and the U.K. and ultimately 20 countries by year-end. The platform app is available on mobile phones on iOS and Android as well as Apple TV, ROKU and Amazon Fire TV.

Digital Streaming Domination

The migration to digital and streaming is paying off for Fox Corporation. For the month of July, FOX News Digital logged 2 billion multi-platform views and over 100 million multi-platform unique visitors. This marks the 8th consecutive month of cross-platform unique visitors. July marked 12% YoY growth in views and 13% YoY growth in unique visitors.

The Fox News Mobile App beat the CNN Mobile App for the 20th straight month with 8.6 million unique visitors versus 7.5 million, respectively. FoxBusiness.com recorded a 100% YoY increase in multi-platform unique visitors for the month of July with 31.8 million driving 209 million total minutes and 131 million total views.

The upcoming Presidential elections coupled with start of the NFL season with plenty of content in the pipeline makes Fox Corporation an attractive holding for longer term investors looking to capitalize on the recovery narrative.

Fox Corp Weekly Stock Chart
Fox Corp Weekly Stock Chart

FOXA Opportunistic Pullback Price Levels

Using the rifle charts on the weekly and daily time frames provides a near-term precision view of the landscape for FOXA stock. The weekly rifle chart completed the channel tightening from the 5-period moving average (MA) through the 15-period MA at $26.92.

The monthly stochastic mini pup targets the upper Bollinger Bands (BBs) near the $31.00 Fibonacci (fib) level. The weekly market structure low (MSL) buy triggered above $24.82.

The daily rifle chart stochastic peaked and fell under the 80-band stochastic which can provide opportunistic pullback entry levels at the 26.73 weekly 15-period MA and fib, $25.25 fib and $24.22 fib. This is not a momentum stock so the price targets may seem conservative. The key is to utilize the daily stochastic oscillation down before the weekly stochastic resumes the upward momentum when the daily stochastic crosses back up.

Original Post

Fox Corporation Is A Recovery Buy
 

Related Articles

Fox Corporation Is A Recovery Buy

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email