Fox Corporation operates as a news, sports, and entertainment company in the United States (U.S.). The company operates through four segments: Cable Network Programming, Television, Credible, and The FOX Studio Lot. The Cable Network Programming segment produces and licenses news and sports content for distribution through traditional cable television systems, direct broadcast satellite operators and telecommunication companies, virtual multi-channel video programming distributors, and other digital platforms primarily in the U.S. Television segment produces, acquires, markets, and distributes programming through the FOX broadcast network, advertising supported video-on-demand service Tubi, and operates power broadcast television stations including duopolies and other digital platform; and produces content for third parties. The Credible segment engages in the consumer finance marketplace. The FOX Studio Lot segment provides television and film production services along with office space, studio operation services and includes all operations of the facility. The company was incorporated in 2018 and is headquartered in New York, New York.

Fox Corporation looks like a mature, profitable media business with strong liquidity and moderate leverage, but the market is not already pricing it cheaply on several valuation multiples. A P/E of 14.66 is below the industry median, which supports the valuation; however, P/S and P/B are notably above industry benchmarks, limiting upside from re-rating. A P/FCF around the median suggests that free cash flow is already being priced fairly by the market. The company’s strength lies in its balance sheet: debt/equity of 0.56 is below the median, current ratio of 3.17 and quick ratio of 2.99 are very comfortable, and cash on hand is also high, which reduces financial risk. Profitability looks solid: ROE, ROA, ROI, and return on tangible equity are above the median, and the operating margin is especially strong, confirming the business’s ability to generate profit at the operating level. At the same time, gross margin is below the industry median, while net margin and EPS forecast do not show any clear acceleration, so earnings quality does not appear to be improving. The year-over-year trend is generally cautious: revenue, EBITDA, and net income remain high, but ROE, ROA, ROI, and margins are gradually declining from stronger levels in the prior year. Long-term debt has changed very little, which is good for predictability, but it also provides no additional catalyst for valuation upside. Dividend yield has declined compared with previous periods, so the dividend case for re-rating has become weaker. Overall, the fundamentals support the current valuation more than they justify a meaningful increase in the target price. For an investor, this is a story of stability, balance-sheet discipline, and decent profitability, but without clear growth acceleration or a cheap valuation across all key multiples.

Fox Corporation

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, незначительно упал. Рынок не поддерживает быков.

Strong index, slightly down. The market does not support the bulls.

Сильный индекс, без изменений. Отток средств из лонгов на высоком уровне.

Strong index, flat. Outflow of funds from longs at a high level.

Fox combines strong balance sheet strength and good operating profitability with expensive P/S and P/B multiples, while slowing margin and return trends limit the potential for rerating.

Key Points
Streaming stocks have struggled this year, amid a rush to consolidate.
The combination of Paramount and Warner Bros. Discovery could shake up the industry.
Big tech streaming platforms also pose a threat to the streaming and entertainment companies.
The streaming sector remains as volatile as ever, and the push to consolidation has continued this year.
The merger between Warner Bros. Discovery and Paramount closed earlier this month, forming Skydance (NYSE: SKYD). This new Hollywood powerhouse will have to overcome roughly $80 billion in debt to deliver results for investors.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Roku (NASDAQ: ROKU) agreed to be acquired by Fox Corporation in a move by Fox to expand its distribution and reach, as Alphabet's YouTube gains market share over traditional streamers.
Netflix (NASDAQ: NFLX) remains the industry leader, but a lot could change in the next few years. Let's take a look at where Netflix and its streaming peers could be by 2030.
1. Netflix
Netflix invented streaming and continues to lead the industry, though doubts about its future have grown this year.
The stock has tumbled as it's reported weak engagement and as it's lost market share to YouTube. Netflix no longer reports subscriber numbers, so we have less insight into the business than we once did.
The question for Netflix is whether it can maintain its current level of growth in the low-teens revenue range. If it can do that, the stock could be 50% higher or better by 2030. However, if the growth in the business continues to slow, Netflix stock is likely to underperform. While a decline in revenue seems unlikely, Netflix's original content has been underwhelming, and it will have to turn that around for its growth rate to stabilize.
2. Disney
Disney (NYSE: DIS) has been slow to find success with its streaming business after launching Disney+, but its streaming platform, which also includes Hulu and ESPN, is finally profitable and is delivering strong bottom-line growth.
Under new CEO Josh D'Amaro, the company is in the process of restructuring under his "One Disney" plan, which will enable viewers to easily use all three of its services in one app. Additionally, the company is embracing that strategy to do more to bundle its parks and experiences with streaming, using streaming to market the parks, and to better target its experiences to individual viewers' tastes.
The plan makes sense, but Disney has been slow to execute these strategies in the past, so investors may want to wait and see how the rollout goes. Disney stock has gone nowhere in the last decade, but it could finally make gains as streaming profits grow. After so much underperformance in recent years and with the entertainment business largely mature, I'm skeptical that the company can outperform the market between now and 2030.
3. Skydance
The newest kid on the block in streaming has the most to prove. Skydance combined two struggling legacy streaming platforms, Warner Bros. Discovery and Paramount, into one, and absorbed roughly $80 billion in debt to do it.
It also settled a lawsuit with several state attorneys general. It made a number of compromises, including releasing at least 30 theatrical films per year over the next five years. That commitment, among others, could hamper its ability to turn profitable.
Given its debt and the restrictions from the settlement, Skydance faces an uphill battle through 2030. The stock will struggle to outperform the market.
4. Comcast
Finally, Comcast (NASDAQ: CMCSA) is the last major streaming stock on the list, following the wave of consolidation. However, the Peacock parent has less exposure to streaming than other companies on this list, as its primary business is broadband internet.
With its cable business declining and broadband mature, the company has struggled to grow. While Peacock offers a good mix of entertainment and has reached 48 million users in the U.S., it doesn't operate internationally and is unlikely to have a significant impact on Comcast's bottom line.
For dividend and value investors, Comcast may be attractive, but the business and the stock have been in decline for years, and that trend will be difficult to reverse.
What it means for investors
Legacy operators still face headwinds from the decline of the cable and box office businesses, giving Netflix an advantage over its peers.
Still, all of these companies are competing against big tech companies like Amazon, Alphabet, and Apple that see streaming as a way to pad their user ecosystems and make them stickier, and they have the means to operate at a loss if needed.
Therefore, all four of these stocks face challenges in addition to streaming reaching maturity in established markets like North America. Netflix still looks like the best bet, given its established global presence and scale, but its days of delivering market-crushing growth for investors may be over.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,795!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,390,634!*
Now, it’s worth noting Stock Advisor’s total average return is 946% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 13, 2026.
Jeremy Bowman has positions in Netflix and Roku. The Motley Fool has positions in and recommends Netflix, Roku, and Walt Disney. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.

Here's Where Netflix and 3 Other Streaming and Media Stocks Could Be by 2030

Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned cash to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
On Tuesday, Fox's Executive Chair, CEO, Lachlan K. Murdoch, made a $10.27M purchase of FOX, buying 149,934 shares at a cost of $68.53 a piece. Investors can pick up FOX even cheaper than Murdoch did, with the stock trading as low as $58.66 at last check today which is 14.4% below Murdoch's purchase price. Fox is trading off about 0.3% on the day Thursday. Before this latest buy, Murdoch made one other purchase in the past year, buying $10.63M shares at a cost of $60.63 a piece.
And on Wednesday, Director James L. Robo bought $5.21M worth of Kayne Anderson BDC, buying 400,000 shares at a cost of $13.03 a piece. This buy marks the first one filed by Robo in the past year. Kayne Anderson BDC is trading up about 2.5% on the day Thursday. So far Robo is in the green, up about 2.9% on their purchase based on today's trading high of $13.41

Thursday 9/17 Insider Buying Report: FOX, KBDC

Fintel reports that on September 14, 2026, Citizens initiated coverage of Fox (NASDAQGS:FOX) with a Market Outperform recommendation.
Fox Corporation, headquartered in the United States, operates primarily in the media and entertainment industry, focusing on television broadcasting and cable network programming. The company owns and operates the Fox News Channel, Fox Business Network, and Fox Broadcasting Company. Prior to this rating action, the stock closed at $58.45 on September 11, 2026. This followed a one-week price change of +0.05% from a baseline close of $58.42 on September 4, 2026, and a one-month price change of +5.62% from a baseline close of $55.34 on August 11, 2026. The latest close was also recorded at $58.45 on September 11, 2026.
Separately, on August 25, 2026, Guggenheim reiterated its Buy rating for Fox. As of August 28, 2026, the current consensus target mean for the stock was $67.73, representing an implied change of +15.87%, with a median target of $66.83. This is compared to the prior consensus target mean of $63.72 recorded on August 4, 2026, reflecting a consensus target revision of +6.28%.
As of the current recommendation period on September 1, 2026, the aggregate analyst sentiment shows 5 strong buy, 11 buy, 10 hold, 1 sell, and 0 strong sell recommendations, totaling 27 recommendations. This represents 59.3% positive, 37.0% hold, and 3.7% negative recommendations. In the prior period as of August 1, 2026, the total of 27 recommendations consisted of 5 strong buy, 10 buy, 11 hold, 1 sell, and 0 strong sell recommendations, which represented 55.6% positive, 40.7% hold, and 3.7% negative recommendations.
Recent analyst actions
Recent analyst upgrades, downgrades, initiations, and maintained ratings
Date
Analyst
Prior
Latest recommendation
Action
September 14, 2026
Citizens
Market Outperform
initiated coverage
August 25, 2026
Guggenheim
Buy
Buy
reiterated
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
This story originally appeared on Fintel.

Citizens Initiates Coverage of Fox at Market Outperform

Key Points
Netflix is a huge business facing some challenges.
But it has always survived challenges in the past.
Its valuation is compelling at recent levels.
Looking for a promising growth stock for your long-term portfolio? How about one that has averaged annual gains of 24% over the past 15 years and 24% over the past three years?
I'm referring to Netflix (NASDAQ: NFLX), which needs no introduction.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The stock has averaged big losses over the past three years, though, which either means it's in trouble -- or it's presenting a great buying opportunity for long-term believers.
I think it's the latter. Netflix has actually been my best-performing investment ever, and I've been investing for decades. I'm hanging on to the stock, too, because I think it has more room to grow.
So why invest in Netflix? Well, it's one of the world's premier streaming services. It does have competition, from the likes of Amazon.com's Prime Video and, increasingly, Alphabet's YouTube. Netflix has addressed this in part by expanding its scope -- such as by offering live sports broadcasts, cloud-based games, and video podcasts. In addition, by now having an advertising-supported membership group, the company has created another significant revenue stream.
And Netflix is still growing, too. Its second quarter, reported in July, featured revenue up 13% year over year to $12.6 billion. It's offering programming in about 50 languages to more than half a billion people in more than 190 countries. It's clearly a major force in the U.S., and it can grow bigger in many other countries, too.
Netflix's valuation is another draw. Its forward-looking price-to-earnings (P/E) ratio was recently 25.4, well below the five-year average of 30.6, and its regular P/E ratio of 25.2 is also below the five-year average of 36.2.
There are indeed challenges the company is facing, but I wouldn't count it out. Management has demonstrated admirable restraint by walking away from some big deals, such as those with Warner Bros. Discovery and Roku, after choosing not to match the winning bids from Paramount Skydance and Fox, respectively. Many managements would have kept bidding, with insufficient regard for shareholder value.
Even some big investors, such as Bill Ackman, are buying Netflix.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,318,055!*
Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 23, 2026.
Selena Maranjian has positions in Alphabet, Amazon, Netflix, and Warner Bros. Discovery. The Motley Fool has positions in and recommends Alphabet, Amazon, Netflix, Roku, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.

The Ultimate Growth Stock to Buy With $1,000 Right Now -- It's Been My Best Stock Performer by Far

In trading on Friday, precious metals shares were relative leaders, up on the day by about 2.3%. Leading the group were shares of TRX Gold, up about 9.1% and shares of Encore Energy up about 7% on the day.
Also showing relative strength are television & radio shares, up on the day by about 2% as a group, led by Newsmax, trading higher by about 17.8% and Fox, trading higher by about 5.3% on Friday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Friday Sector Leaders: Precious Metals, Television & Radio Stocks

(RTTNews) - Fox Corporation (FOXA) announced a profit for fourth quarter of $691 million
The company's earnings totaled $691 million, or $1.61 per share. This compares with $717 million, or $1.57 per share, last year.
Excluding items, Fox Corporation reported adjusted earnings of $765 million or $1.79 per share for the period.
The company's revenue for the period rose 28.1% to $4.212 billion from $3.287 billion last year.
Fox Corporation earnings at a glance (GAAP) :
-Earnings: $691 Mln. vs. $717 Mln. last year. -EPS: $1.61 vs. $1.57 last year. -Revenue: $4.212 Bln vs. $3.287 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Fox Corporation Q4 Sales Increase

Central Garden (CENTA) came out with quarterly earnings of $1.54 per share, beating the Zacks Consensus Estimate of $1.51 per share. This compares to earnings of $1.56 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +1.99%. A quarter ago, it was expected that this pet and lawn products maker would post earnings of $1.08 per share when it actually produced earnings of $1.29, delivering a surprise of +19.44%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Central Garden, which belongs to the Zacks Consumer Products - Discretionary industry, posted revenues of $882.36 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.66%. This compares to year-ago revenues of $960.91 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Central Garden shares have added about 32.4% since the beginning of the year versus the S&P 500's gain of 13%.
What's Next for Central Garden?
While Central Garden has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Central Garden was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.05 on $586.21 million in revenues for the coming quarter and $2.90 on $2.99 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Discretionary is currently in the bottom 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Consumer Discretionary sector, Fox Corporation (FOX), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This company is expected to post quarterly earnings of $1.15 per share in its upcoming report, which represents a year-over-year change of -9.5%. The consensus EPS estimate for the quarter has been revised 13.9% lower over the last 30 days to the current level.
Fox Corporation's revenues are expected to be $3.73 billion, up 13.5% from the year-ago quarter.
Should You Invest in Central Garden & Pet Company (CENTA)?
Before you invest in Central Garden & Pet Company (CENTA), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Central Garden (CENTA) Tops Q3 Earnings and Revenue Estimates

Key Points
Netflix has been a powerhouse performer, but its growth appears to be slowing.
Shares of Netflix are attractively priced right now.
Netflix (NASDAQ: NFLX) has averaged annual gains of 21% over the past 15 years. But in 2026, shares are down 25%. Is this a good opportunity to invest in Netflix?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Why invest in Netflix?
Netflix is a streaming powerhouse, along with Amazon's Prime Video service. Per Evoca.tv, Netflix's recent U.S. streaming market share was 21%, vs. 22% for Amazon Prime Video. The company has boasted that "We are entertaining over half a billion people in more than 190 countries and 50 languages..."
In its second quarter, Netflix posted revenue rising 13% year over year and net income up 9%. The company has been broadening its offerings, too, with live sports broadcasts, games, and podcasts.
Netflix's shares seem reasonably valued at recent levels, with a forward-looking price-to-earnings (P/E) ratio of 22, below its five-year average of 31. Its recent price-to-sales ratio of 6.1 is also below its average of 6.5.
A final plus is management discipline, as Netflix has walked away from some big deals, such as those with Warner Bros. Discovery and Roku, after choosing not to match the winning bids from Paramount Skydance and Fox, respectively. A company with less regard for shareholder value might have kept bidding. Netflix's management has also been buying back millions of shares -- 13.5 million in the last quarter -- which rewards shareholders. Why might you not invest in Netflix?
Of course, there are some concerns to consider. There have been reports of Netflix losing viewers between seasons of various shows due to too long a wait for the next season. Also, some worry that it's relying on price increases for growth more than it should. Be sure to look at the whole picture before deciding whether to invest in Netflix.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 28, 2026.
Selena Maranjian has positions in Amazon, Netflix, and Warner Bros. Discovery. The Motley Fool has positions in and recommends Amazon, Netflix, Roku, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Down 25%, Is It Finally Time to Buy Netflix (NFLX) Stock?

Investors in Fox Corporation FOX need to pay close attention to the stock based on moves in the options market lately. That is because the Aug. 21, 2026 $45.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Fox shares, but what is the fundamental picture for the company? Currently, Fox is a Zacks Rank #1 (Strong Buy) in the Broadcast Radio and Television industry that ranks in the Top 40% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimate for the current quarter, while none have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.57 per share to $1.61 in that period.
Given the way analysts feel about Fox right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Do Options Traders Know Something About Fox Stock We Don't?

For Immediate Release
Chicago, IL – July 24, 2026 – Stocks in this week’s article are AIM ImmunoTech AIM, Hasbro HAS, Fox FOX, Cencora Inc. COR and Intuitive Surgical ISRG.
Bet on 5 Top-Ranked Stocks with Rising P/E Ratios
Investors often opt for the stock-picking approach that involves stocks with a low price-to-earnings (P/E) ratio. This strategy is based on the notion that the lower the P/E ratio is, the higher the stock value. The reasoning behind this is straightforward — when a stock's current market price does not adequately reflect its higher earnings, it suggests potential for growth.
But there is more to this whole P/E story. Because not just low P/E, stocks with a rising P/E can also fetch strong returns. In this regard, investors can bet on the likes of AIM ImmunoTech, Hasbro, Fox, Cencora Inc. and Intuitive Surgical.
Rising P/E: A Useful Tool
The concept is that as earnings rise, so should the price of the stock. As forecasts for expected earnings come in higher, strong demand for the stock should continue to push up its prices. After all, astock's P/E gives an indication of how much investors are ready to shell out per dollar of earnings.
Suppose an investor wants to buy a stock with a P/E ratio of 30. This means that he is willing to shell out $30 for only $1 worth of earnings as he expects earnings of the company to rise at a faster pace in the future owing to strong fundamentals.
So, if the P/E of a stock is rising steadily, it means that investors are assured of its inherent strength and expect some strong positives out of it.
Also, studies have revealed that stocks have seen their P/E ratios jump over 100% from their breakout point in the cycle. So, if you can pick stocks early in their breakout cycle, you can end up seeing considerable gains.
Here are five out of the 62 stocks:
AIM ImmunoTech: The Zacks Rank #2 (Buy) AIM ImmunoTechis an immuno-pharma company. It is focused on the research and development of therapeutics to treat multiple types of cancers and immune-deficiency diseases. You can see the complete list of today's Zacks #1 Rank stocks here.
The average four-quarter earnings surprise of AIM is 52.66%.
Hasbro: The Zacks Rank #2 company designs, manufactures and markets games, toys and licensed products.
The average four-quarter earnings surprise of HAS is 23.60%.
Fox: The Zacks Rank #2 company produces and distributes news, sports and entertainment content.
The average four-quarter earnings surprise of FOX is 38.99%.
Cencora: The Zacks Rank #2 company is one of the largest pharmaceutical distribution and healthcare solutions providers globally.
The average four-quarter earnings surprise of COR is 1.59%.
Intuitive Surgical: The Zacks Rank #2 company designs, manufactures and markets the da Vinci surgical system, Ion endoluminal system and related instruments and accessories.
The average four-quarter earnings surprise of ISRG is 16.53%.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2959033/bet-on-5-top-ranked-stocks-with-rising-pe
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Fox Corporation

Sign up and unlock all the capabilities of the AI-screener