Valued at a market cap of $18.5 billion, News Corporation (NWS) is a global media and information services company headquartered in New York. The company operates through six segments: Digital Real Estate Services; Subscription Video Services; Dow Jones; Book Publishing; News Media; and Other.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and News Corporation fits this criterion perfectly. Its key strengths lie in its diverse portfolio of trusted media brands, strong presence in digital real estate, and a growing subscription-based revenue model. It owns leading newspapers like The Wall Street Journal and The Times, and its HarperCollins unit is one of the world’s largest book publishers.
The mass media and publishing company dipped 7.5% from its 52-week high of $35.25 recorded on Feb. 19. Shares of NWS have surged 5% over the past three months, lagging behind the Communication Services Select Sector SPDR ETF Fund’s (XLC) 6.2% increase.
On a YTD basis, NWS has climbed 7.1%, slightly performing better than XLC’s 6.2% gain. Over the past 52 weeks, News Corporation has surged 18.5%, lagging behind the XLC’s 21.9% rise.
Despite fluctuations, the stock has been trading above its 200-day moving average for the past year and over its 50-day moving average since late April.
Following the release of its Q3 results on May 8, News Corporation’s stock registered a marginal gain. The company generated nearly $2 billion in revenue, representing a 1% increase from the same period last year. Adjusted net income advanced 28.9% to $98 million, with adjusted EPS rising 30.8% to $0.17.
Its top competitor, Cinemark Holdings, Inc. (CNK), has outpaced NWS, gaining 64.5% over the past 52 weeks.
NWS has a consensus rating of “Strong Buy” from the three analysts covering the stock, and its mean price target of $39 indicates a premium of 19.6% from the prevailing price levels.
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.
