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 демонстрирует смешанную фундаментальную картину с рядом сильных и слабых сторон. С одной стороны, компания имеет низкий коэффициент P/E на уровне 14.98, что ниже медианы отрасли, что может указывать на недооцененность. Однако, значительное превышение медианы по P/S, P/B и P/FCF указывает на возможную переоцененность. Финансовые показатели, такие как выручка, чистая прибыль и операционная прибыль, значительно превышают медианные значения по отрасли, что свидетельствует о высоком уровне эффективности. Тем не менее, компания сталкивается с проблемами с валовой маржей, которая ниже медианы, что может оказывать негативное влияние на общие финансовые результаты. Долговая нагрузка также ниже медианы, что является положительным фактором, однако рост долгосрочных обязательств вызывает определенные опасения. В целом, Fox Corporation имеет сильные стороны в виде хороших показателей доходности, но также и слабые точки, которые могут повлиять на будущую оценку компании.

Fox Corporation

For Immediate Release
Chicago, IL – April 2, 2026 – Today, Zacks Equity Research discussesNetflix NFLX, Fox FOXA, Roku Inc. ROKU and Sirius XM SIRI.
Industry: Broadcast Radio & TV
Link: https://www.zacks.com/commentary/2892858/4-broadcast-radio-tv-stocks-to-watch-from-a-challenging-industry
The Zacks Broadcast Radio and Television industry has been grappling with an escalation in cord-cutting despite a surge in demand for streaming content. However, industry players, such as Netflix, Fox, Roku Inc. and Sirius XM, are reaping the benefits of a massive spike in digital content consumption. These companies are thriving due to their diverse content offerings, which include original, regional and short-form content tailored for small screens like smartphones and tablets.
Improved Internet speed and penetration, coupled with technological advancements, have been advantageous for industry participants. As monetization and revenues from advertising spending continue to be modest, strategies focused on profit protection, cash management and greater technology integration have gained significance and are expected to aid these companies in driving top-line growth in the near term.
Industry Description
The Zacks Broadcast Radio and Television industry encompasses companies that provide entertainment, sports, news, non-fiction and musical content across television, radio and digital media platforms. These entities generate revenues through the sale of television and radio programs, advertising slots and subscriptions. With technological advancements and a growing demand for virtual reality and Internet radio, industry players are increasing their investments in research and development, as well as sales and marketing efforts, to remain competitive. The industry's focus is likely to shift toward sustaining current levels of operations, coupled with a renewed emphasis on flexibility. This approach would accelerate the transition to a variable cost model, thereby reducing fixed costs and enhancing agility in the face of evolving market dynamics.
4 Broadcast Radio and Television Industry Trends to Watch
Shift in Consumer Preference a Key Catalyst: To adapt to the evolving landscape, companies are diversifying their content offerings for over-the-top (OTT) services alongside traditional linear TV. The availability of streaming services across a wide range of platforms has enabled them to reach a global audience, expand their international user base and attract advertisers to their platforms, thereby boosting ad revenues. The utilization of services that aid advertisers in measuring their return on investment and enhancing use cases is expected to benefit industry participants. Major leagues and events, such as the NFL, NHL, Olympics, European Games, EPL and elections, also contribute significantly to ad revenue generation.
Increased Digital Viewing Fuels Content Demand: Many industry participants, either launching their own OTT services or acquiring existing ones, leverage user insights to deliver tailored content. The surge in digital viewing has made consumer data readily available, allowing companies to apply artificial intelligence (AI) and machine learning techniques to create or procure targeted content. This approach not only boosts user engagement but also enables industry players to raise the prices of their services at opportune moments without the fear of losing subscribers.
Uncertain Macroeconomic Landscape Impedes Production and Ad Demand: Advertising is a significant revenue source for the Broadcast Radio and Television industry. However, industry participants are grappling with the effects of persistently high inflation, rising interest rates, increased capital costs, a soaring U.S. dollar and the looming threat of a recession. These factors have prompted advertisers to trim their ad budgets, which is expected to impact the top-line growth of industry players in the near term. Moreover, intense competition for ad dollars from tech and social media companies has been a significant impediment to the growth of industry participants.
Low-Priced Skinny Bundles Impact Revenues: The surge in cord-cutting has compelled industry participants to offer "skinny bundles." These Internet-based services often contain fewer channels than traditional subscriptions and are, therefore, more affordable. This move aligns with changing consumer viewing dynamics, as growth in Internet penetration and advancements in mobile, video and wireless technologies have boosted small-screen viewing. While these alternative services are expected to keep users engaged with their platforms, increasing the need for additional content, the low-priced skinny bundles are likely to dampen the top-line performance of industry players.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Broadcast Radio and Television industry is housed within the broader Zacks Consumer Discretionary sector. It currently carries a Zacks Industry Rank #169, which places it in the bottom 30% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dismal near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the bottom 50% of the Zacks-ranked industries results from a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group’s earnings growth potential.
Despite the gloomy industry outlook, a few stocks are worth watching, as these have the potential to outperform the market based on a strong earnings outlook. But before we present such stocks, it is worth first looking at the industry’s shareholder returns and current valuation.
Industry Beats Sector, Lags S&P 500
The Zacks Broadcast Radio and Television industry has outperformed the broader Zacks Consumer Discretionary sector but underperformed the S&P 500 Index in the past six-month period.
The industry has plunged 14.3% over this period compared with the S&P 500 and the broader sector’s decline of 4.6% and 15.5%, respectively.
Industry's Current Valuation
On the basis of trailing 12-month Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA), which is a commonly used multiple for valuing Broadcast Radio and Television stocks, the industry is currently trading at 8.47X versus the S&P 500’s 16.52X and the sector’s 9.05X.
In the past five years, the industry has traded as high as 15.53X and as low as 4.91X, recording a median of 8.47X.
4 Broadcast Radio and Television Stocks to Buy
Roku enters 2026 on a solid fundamental footing. February 2026 guidance targets full-year Platform revenue growth of 18% year over year to $4.890 billion, total net revenues of $5.500 billion, and adjusted EBITDA of $635 million, reflecting 267 basis points of margin expansion. Roku is on track to reach 100 million streaming households globally in 2026.
In March 2026, its $2.99 per month ad-free SVOD service, Howdy, made its first expansion beyond the Roku ecosystem, launching on Amazon Prime Video. AI-powered home screen enhancements, growing programmatic advertising capabilities and the upcoming FIFA World Cup 2026 are driving international subscriptions further to strengthen the fundamental growth outlook for this Zacks Rank #1 (Strong Buy) company. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for 2026 earnings has moved north by 59.1% to $2.10 per share in the past 60 days. Roku shares have lost 8.9% in the past six-month period.
Netflix enters 2026 with robust, company-issued guidance for full-year 2026 with revenues expected between $50.7 billion and $51.7 billion, reflecting 12-14% year-over-year growth. This Zacks Rank #3 (Hold) company targets a 31.5% operating margin, driven by improving cost efficiencies. Advertising revenues are set to roughly double to approximately $3 billion, powered by a rapidly scaling ad-supported membership tier.
With more than 325 million paid members globally, Netflix commands a broad and durable monetization base. The 2026 World Baseball Classic became the most-watched program ever on Netflix in Japan, validating its live events strategy and international reach. In February 2026, NFLX demonstrated capital discipline by walking away from an overpriced acquisition deal with Warner Bros. Discovery.
The Zacks Consensus Estimate for 2026 earnings has moved north by 1% to $3.17 per share in the past 60 days. NFLX shares have declined 17.3% in the past six-month period.
Fox Corp. enters 2026 with compelling growth catalysts. This Zacks Rank #3 company holds U.S. broadcast rights to the FIFA World Cup 2026, positioning it for a significant advertising revenue surge. Tubi, now serving 100 million monthly active users and streaming over one billion hours monthly, reinforces FOX's digital monetization engine.
In February 2026, Tubi Media Group's Red Seat Ventures acquired Supercast, expanding creator-focused subscription monetization. Cable Network Programming distribution revenues grew 5% in the fiscal second quarter, driven by contractual price increases. A $3.6 billion share repurchase authorization and a declared 28 cents per share dividend signal management's confidence in strong free cash flow generation.
The Zacks Consensus Estimate for fiscal 2026 earnings has moved north by 5.3% to $4.60 per share in the past 60 days. FOXA shares have lost 5.9% in the past six-month period.
SiriusXM enters 2026 with strong fundamental momentum. Management guidance targets approximately $8.5 billion in revenues and $1.35 billion in free cash flow, paving the way toward the $1.5 billion 2027 goal. In February 2026, this Zacks Rank #3 company refinanced near-term debt through a $1.25 billion offering of 5.875% Senior Notes due 2032, extending maturities and improving financial flexibility.
March 2026 brought an aggressive content expansion, with exclusive new channels for Morgan Wallen, BTS and John Summit, plus NCAA basketball coverage. With 360L penetration growing across the in-car fleet and Companion Plans broadening household reach, SIRI's fundamentals point toward a rewarding 2026.
The Zacks Consensus Estimate for 2026 earnings has moved north by 0.3% to $3.09 per share in the past 60 days. In the past six-month period, SIRI shares have returned 2.1%.
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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/performance for information about the performance numbers displayed in this press release.
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Zacks Industry Outlook Highlights Netflix, Fox and Sirius

Key Points
Disney has fallen over the last month in part due to fears about the war in Iran.
It was one of a small percentage of stocks that fell on Monday, despite good news out of Iran.
Disney's streaming profit hasn't yet replace profit from linear media.
Walt Disney Co (NYSE: DIS) has seemingly been in flux for the last decade.
Over that period, the entertainment giant acquired Fox's entertainment assets, launched Disney+, managed through the pandemic, replaced its CEO, brought back Bob Iger, and now Iger has officially retired, replaced by new CEO Josh D'Amaro.
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During that time, Disney has retained its primacy in family entertainment and built an impressive streaming business, but the stock has gone nowhere, as it is basically flat over the last decade, while the S&P 500 has more than tripled.
D'Amaro takes over during a challenging period. Not only has the business struggled to move past the linear media era, but the geopolitical situation in Iran has put pressure on the travel sector, and tourism makes up a substantial portion of Disney's revenue.
While the company lumps in its parks, experiences, and consumer products business into one segment, the vast majority of that revenue comes from its theme parks and related businesses like its cruise line.
Disney's theme parks have proven to be its most important cash cow over the last decade, driving wide profit margins, while the streaming business has struggled and is cannibalizing its linear TV and box office movie business.
In fiscal 2025, Disney grew its experiences business by 6% to $36.2 billion and reported a $10 billion operating profit, making up more than half of its profit.
What happened on Monday
Stocks soared Monday on a relief rally driven by President Trump's decision to pause an attack on Iranian power plant infrastructure while the two sides negotiate.
Risk-on, cyclical stocks jumped, and that pattern was clear from the performance of the Dow Jones Industrial Average, as only six of the 30 stocks fell, and those were primarily defensive stocks. However, Disney was an outlier. Though its parks business has a ton of exposure to cyclical forces, Disney stock fell 1.6% on the day.
Investors seem to be saying that even the end of the war or a cooling of tensions isn't enough to push the stock higher. With oil prices rising, plane tickets are likely to go up, and consumers will have less discretionary income to spend at places like Disney World.
What it means for Disney
One day's performance does not make a stock, but Disney's fall stands out, given that it would benefit from an end to tensions in Iran.
With the sell-off, investors seem to be saying that Disney stock can't rely on the macro environment for its recovery. It will have to earn it through concrete business improvements.
For the current fiscal year, the company is targeting double-digit adjusted earnings per share. That's not a bad target, but right now, investors seem to be skeptical toward D'Amaro. Disney's stock has fallen through March, and it will need some help from management to turn it around.
D'Amaro deserves some patience from investors, but Disney's entertainment business is challenged by the decline of linear TV, and its theme parks could face a setback from the war. Disney could have another tough year ahead of it.
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Disney Missed Out on Monday's Market Rally. Is It a Red Flag for the Entertainment Giant?

It has been about a month since the last earnings report for Fox (FOXA). Shares have lost about 11% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Fox due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Fox Corporation before we dive into how investors and analysts have reacted as of late.
FOXA Q2 Earnings Surpass Estimates, Revenues Increase Y/Y
Fox Corporation reported second-quarter fiscal 2026 adjusted earnings of 82 cents per share, which beat the Zacks Consensus Estimate by 74.47%. The figure decreased 14.6% year over year.
Revenues increased 2% year over year to $5.18 billion, surpassing the consensus mark by 2.47%.
Distribution revenues (38.6% of total revenues) increased 4% year over year to $2 billion, driven by 5% growth at the Cable Network Programming segment and 1% growth at the Television segment.
Advertising revenues (47.4% of total revenues) increased 1% year over year to $2.46 billion, primarily fueled by higher sports and news pricing, continued digital growth led by the Tubi AVOD service and the impact of additional MLB postseason games, partially offset by lower political advertising revenues and lower ratings.
Content and other revenues (14% of total revenues) remained essentially unchanged year over year at $725 million.
Top-Line Details
Cable Network Programming revenues (43.9% of total revenues) increased 5% year over year to $2.28 billion. Advertising revenues grew 7%, whereas revenues from Distribution rose 5% year over year. Content and other revenues increased 4% on a year-over-year basis.
Television revenues (56.7% of total revenues) declined 1% from the year-ago quarter's figure to $2.94 billion. Advertising revenues increased 1.36% year over.
Distribution revenues grew 1% year over year, driven by higher average rates at the company's owned and operated television stations and increases in fees from third-party FOX affiliates.
Content and other revenues decreased 19% year over year to $142 million, primarily due to lower entertainment content and other revenues, which were impacted by the timing of deliveries.
Operating Details
In the second quarter of fiscal 2026, operating expenses increased 3.2% year over year to $3.9 billion. As a percentage of revenues, operating expenses expanded 90 basis points (bps) to 75.2%.
Selling, general & administrative (SG&A) expenses rose 13.3% year over year to $595 million. As a percentage of revenues, SG&A expenses expanded 120 bps to 11.5%.
Total adjusted EBITDA decreased 11.4% year over year to $692 million. Adjusted EBITDA margin contracted 190 bps to 13.4%.
Cable Network Programming EBITDA rose 5% year over year to $687 million. Television reported an adjusted EBITDA of $143 million, down 30% from the year-ago quarter.
Balance Sheet
As of Dec. 31, 2025, Fox had $2.02 billion in cash and cash equivalents compared with $4.37 billion as of Sept. 30, 2025.
As of Dec. 31, 2025, Fox's total borrowings stood at $6.6 billion, unchanged from $6.6 billion as of Sept. 30, 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -15.91% due to these changes.
VGM Scores
At this time, Fox has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Fox has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Fox (FOXA) Down 11% Since Last Earnings Report?

Looking at the universe of stocks we cover at Dividend Channel, on 3/4/26, H & R Block, Inc. (Symbol: HRB), Fox Corp (Symbol: FOXA), and Yum China Holdings Inc (Symbol: YUMC) will all trade ex-dividend for their respective upcoming dividends. H & R Block, Inc. will pay its quarterly dividend of $0.42 on 4/6/26, Fox Corp will pay its semi-annual dividend of $0.28 on 3/25/26, and Yum China Holdings Inc will pay its quarterly dividend of $0.29 on 3/25/26. As a percentage of HRB's recent stock price of $30.62, this dividend works out to approximately 1.37%, so look for shares of H & R Block, Inc. to trade 1.37% lower — all else being equal — when HRB shares open for trading on 3/4/26. Similarly, investors should look for FOXA to open 0.50% lower in price and for YUMC to open 0.53% lower, all else being equal.
Below are dividend history charts for HRB, FOXA, and YUMC, showing historical dividends prior to the most recent ones declared.
H & R Block, Inc. (Symbol: HRB):
Fox Corp (Symbol: FOXA):
Yum China Holdings Inc (Symbol: YUMC):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 5.49% for H & R Block, Inc., 0.99% for Fox Corp, and 2.11% for Yum China Holdings Inc.
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In Monday trading, H & R Block, Inc. shares are currently off about 2.8%, Fox Corp shares are off about 0.8%, and Yum China Holdings Inc shares are down about 1% on the day.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ex-Dividend Reminder: H & R Block, Fox and Yum China Holdings

Key Points
Netflix stock soared after it gave up its bid for Warner Bros.
The strategic rationale for the deal was never clear.
Warner Bros. is bloated with debt, and Netflix doesn't need it to succeed.
After months of intrigue, Netflix (NASDAQ: NFLX) finally bowed out of the competition for Warner Bros. Discovery (NASDAQ: WBD). Though its offer to buy the company's streaming and studio assets was originally accepted back in December, Paramount Skydance (NASDAQ: PSKY) persisted and scored a winning bid with an offer of $111 billion, including debt, or $31 a share for the whole company.
Netflix investors breathed a sigh of relief after the news was announced, with the stock up 9% on Friday. Prior to the update, Netflix stock had fallen by as much as 25% after WBD accepted its offer.
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Still, the deal always seemed misguided, and it's good news for investors that it's been abandoned. Here are five reasons why.
1. Netflix doesn't need Warner Bros.
The strategic rationale for buying Warner Bros. never seemed complete. Netflix has the world's dominant streaming business, and Warner Bros. is a melange of struggling streaming and studio businesses. In fact, Netflix's success is a big reason for Warner Bros. struggles.
Netflix management seemed to be smitten with Warner Bros. brands and tentpole franchises like Batman and The Wizard of Oz, but the streaming leader doesn't need to pay close to $100 billion for a content library and intellectual property when it's had more success building its own. Notably, Netflix has made almost no acquisitions in its history, and nothing approaching the size of the WB deal.
Additionally, Netflix seemed unsure of what to do about WB's theatrical business, which conflicts with Netflix's preference of avoiding theaters or having a limited release for awards-seeking films. Finally, the HBOMax streaming service seems like an extra appendage for Netflix, which has always had just one brand.
2. Media mergers have a history of failure
Media mergers have a history of blowing up. The most famous example is probably the combination of Time Warner and AOL, but Time Warner, which evolved into Warner Bros. Discovery, has been a white elephant several times.
AT&T's acquisition of Time Warner was a disaster, and its spin-off/merger with Discovery Communications was also a bust, as the stock foundered until WBD put itself on the auction block.
Elsewhere in the streaming sector, Disney's acquisition of Fox's entertainment assets is generally regarded as a dud, and Disney stock has struggled since.
There's no economic rule that all media mergers fail, but given the lack of strategic rationale and the high price tag, the Netflix-WB combo didn't seem promising.
3. Paramount is overpaying for WBD
Paramount is buying WBD because it needs it to stay relevant, but it's paying much more than it's worth. Prior to talk of a sale, WBD was trading below $13 a share, and it was down as low as $7.52 last April.
In addition to a business that hasn't lived up to expectations and frequently reported slow growth and losses, WBD is also loaded with debt, with $33.5 billion in debt in its most recent report.
Taking on that debt would have hamstrung Netflix and made it less flexible with capital allocations.
Paramount might have "won" the bidding war, but any dealmaker knows that overpaying for an asset isn't a victory. Forcing your competitor to do so, on the other hand, can be its own form of checkmate.
4. A deal benefits Netflix
Consolidation tends to be good for remaining industry players, and that seems to be true for Netflix. With Paramount and WBD combining, that means one less bidder for content to compete with. It also could mean one less streaming service in the market if the new company chooses to combine Paramount+ and HBOMax.
Given the struggles of both WBD and Paramount, Netflix could even find itself in a position to buy the new combined company in a few years for less than it had bid for Warner Bros. originally.
Netflix has all the momentum in the industry, and it's unlikely to face a significant challenge from the Paramount-WBD combo, especially with the debt albatross hanging around Paramount's neck.
5. Getting regulatory approval wasn't guaranteed
Netflix is the dominant streaming player in the world. Warner Bros. is one of the biggest film studios and owns the best-known premium cable network, HBO.
It was clear that combining the two businesses would test antitrust guardrails around the world, and the Trump administration had already expressed skepticism about the deal. Hollywood was also opposed to the merger, believing Netflix had already decimated the traditional theatrical business and that acquiring WB would only hasten its demise. If the deal had been blocked by regulators, Netflix would have been on the hook for $5.8 billion breakup fee.
Now that WBD has backed out, Netflix will collect a $2.8 billion termination fee from Warner Bros. and Paramount. That sounds like a win for the streaming leader.
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Jeremy Bowman has positions in Netflix and Walt Disney. The Motley Fool has positions in and recommends Netflix, Walt Disney, 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.

Netflix Backs Out of the Warner Bros. Deal. 5 Reasons It's a Smart Move

Investors in Fox Corp (Symbol: FOXA) saw new options begin trading this week, for the October 16th expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 238 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the FOXA options chain for the new October 16th contracts and identified one put and one call contract of particular interest.
The put contract at the $55.00 strike price has a current bid of $4.20. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $55.00, but will also collect the premium, putting the cost basis of the shares at $50.80 (before broker commissions). To an investor already interested in purchasing shares of FOXA, that could represent an attractive alternative to paying $56.23/share today.
Because the $55.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 62%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 7.64% return on the cash commitment, or 11.71% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Fox Corp, and highlighting in green where the $55.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $60.00 strike price has a current bid of $4.00. If an investor was to purchase shares of FOXA stock at the current price level of $56.23/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $60.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 13.82% if the stock gets called away at the October 16th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if FOXA shares really soar, which is why looking at the trailing twelve month trading history for Fox Corp, as well as studying the business fundamentals becomes important. Below is a chart showing FOXA's trailing twelve month trading history, with the $60.00 strike highlighted in red:
Considering the fact that the $60.00 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 52%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.11% boost of extra return to the investor, or 10.91% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 33%, while the implied volatility in the call contract example is 31%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $56.23) to be 31%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

First Week of October 16th Options Trading For Fox

Shareholders of Fox Corp (Symbol: FOXA) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the July covered call at the $60 strike and collect the premium based on the $3.30 bid, which annualizes to an additional 14.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.4% annualized rate in the scenario where the stock is not called away. Any upside above $60 would be lost if the stock rises there and is called away, but FOXA shares would have to advance 6.4% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 12.2% return from this trading level, in addition to any dividends collected before the stock was called.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Fox Corp, looking at the dividend history chart for FOXA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 1% annualized dividend yield.
Below is a chart showing FOXA's trailing twelve month trading history, with the $60 strike highlighted in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the July covered call at the $60 strike gives good reward for the risk of having given away the upside beyond $60. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for Fox Corp (considering the last 251 trading day closing values as well as today's price of $56.32) to be 31%. For other call options contract ideas at the various different available expirations, visit the FOXA Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Thursday, the put volume among S&P 500 components was 874,227 contracts, with call volume at 1.51M, for a put:call ratio of 0.58 so far for the day. Compared to the long-term median put:call ratio of .65, that represents high call volume relative to puts; in other words, buyers are showing a preference for calls in options trading so far today. Find out which 15 call and put options traders are talking about today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

YieldBoost Fox To 15.4% Using Options

In trading on Wednesday, shares of Fox Corp (Symbol: FOXA) crossed below their 200 day moving average of $61.19, changing hands as low as $61.05 per share. Fox Corp shares are currently trading off about 3.6% on the day. The chart below shows the one year performance of FOXA shares, versus its 200 day moving average:
Looking at the chart above, FOXA's low point in its 52 week range is $46.42 per share, with $76.39 as the 52 week high point — that compares with a last trade of $61.11. The FOXA DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Fox Breaks Below 200-Day Moving Average - Notable for FOXA

Investors interested in stocks from the Broadcast Radio and Television sector have probably already heard of Fox Corporation (FOX) and Fox (FOXA). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Fox Corporation has a Zacks Rank of #2 (Buy), while Fox has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FOX has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
FOX currently has a forward P/E ratio of 12.51, while FOXA has a forward P/E of 14.18. We also note that FOX has a PEG ratio of 7.92. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FOXA currently has a PEG ratio of 8.52.
Another notable valuation metric for FOX is its P/B ratio of 2.35. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FOXA has a P/B of 2.61.
These are just a few of the metrics contributing to FOX's Value grade of B and FOXA's Value grade of C.
FOX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that FOX is likely the superior value option right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.