Time to Buy Fox (FOXA) Stock as Superbowl Sunday Approaches

Core Viewpoint - Superbowl LIX is expected to be the most-watched NFL championship, significantly benefiting Fox Corporation (FOXA) as the primary broadcaster [1][2]. Financial Performance - Fox's fiscal Q2 EBITDA reached a record $781 million, more than doubling year-over-year, driven by a 20% revenue growth to$ 5.07 billion compared to $4.23 billion a year ago, surpassing estimates of$ 4.88 billion [4]. - Adjusted net income for Fox was $442 million, or$ 0.96 per share, nearly tripling from the previous year and exceeding the Zacks EPS Consensus of $0.65 by 47% [5][6]. - Fox has consistently exceeded earnings expectations for 10 consecutive quarters, with an average EPS surprise of 24.2% in the last four quarterly reports [5][6]. Advertising and Viewership - All advertising slots for the Superbowl were sold out months in advance, with some brands reportedly paying up to$ 7 million for a 30-second commercial [3]. - The previous Superbowl in 2023, also broadcasted by Fox, generated $600 million in sales and had a viewership of 114.21 million, making it the third highest in history [2][4]. Future Growth Projections - Fox anticipates continued revenue growth, projecting a 12% increase in total sales for fiscal 2025 to$ 15.65 billion, up from $13.98 billion last year [8]. - Annual earnings are expected to rise by 24% to$ 4.26 per share from $3.43 in 2024 [8]. Digital Initiatives - Fox plans to launch a new subscription streaming service by the end of 2025, focusing on sports and news content to compete with Disney's ESPN+ and Paramount Global [9]. Valuation - Despite an 80% increase in stock price over the last year, FOXA trades at a reasonable forward earnings multiple of 12.7X and under 2X sales [10]. Conclusion - Fox is positioned to be the primary beneficiary of the Superbowl, with strong financial performance and growth prospects, supported by a Zacks Rank 1 (Strong Buy) [11].