What I’m Doing With My Fox Corporation Stock (FOX)

As of now, I’m 6% up on my investment in Fox Corporation (NASDAQ: FOX). It’s always satisfying to see gains, but now comes the critical decision: should I hold, sell, or double down? Here’s where I stand after taking a hard look at the numbers, the company’s fundamentals, and its prospects for the next 12 months.

Why I Invested in Fox

I liked Fox’s position as a media giant with a strong focus on cable programming (Fox News and Fox Sports), both of which are entrenched in their respective markets. The stock’s valuation was also attractive when I bought in, with a low PE ratio compared to many competitors in the media industry. Add to that its consistent free cash flow generation and aggressive share buybacks, and it looked like a safe, income-generating play with some potential upside.

Where Fox Stands Now

Here’s what I see in the numbers today:

  • 6% Gain: My modest gain feels good, but the stock is now up over 59% in the last year, which makes me wonder if it’s overextended.
  • Dividends & Buybacks: Fox pays a 1.14% dividend yield and has been aggressively buying back shares, which boosted its share price.
  • Stability: The beta of 0.77 means this stock is less volatile than the broader market, making it a defensive holding.

However, I’m not blind to the risks:

  • Sluggish Growth: Revenue and earnings growth forecasts for the next five years are weak—2.49% revenue growth and 1.71% EPS growth.
  • Debt: A Debt/Equity ratio of 0.70 is manageable, but interest rates remaining high could make borrowing costlier.
  • Streaming Competition: Platforms like Netflix and Disney+ continue to eat into the traditional TV audience.

What’s My Plan?

Step 1: Hold For Now

Right now, I’m not selling. Fox’s fundamentals are solid, and I see no urgent reason to exit. Its 11.44 PE ratio still feels reasonable in this inflated market, and the company is a reliable cash generator. I also like the share buyback program, which gives me confidence that management believes in the stock’s value.

Step 2: Look for a Trigger

That said, I don’t plan to hold forever unless there’s a compelling reason. I’ll closely watch the Q2 earnings on February 4, 2025. If they miss expectations or growth slows even further, I’ll reevaluate. On the other hand, a strong earnings report could justify holding longer.

Step 3: Consider Selling on Strength

If the stock hits $50+, I’ll probably sell. This would lock in a healthy gain and free up capital for higher-growth opportunities. Fox’s forecasted upside over the next year is limited, with a potential target range of $48–$52, so taking profits above $50 feels like the smart move.

Step 4: Don’t Double Down

I’m not adding to my position here. The stock has already risen 59% in the last year, and with tepid growth projections, it doesn’t have the high-growth profile I’d need to invest more.

What I’ve Learned

Fox has been a solid investment so far, but I’m cautious about chasing additional gains in a company with limited growth. For now, I’m holding and keeping a close eye on earnings and market conditions. But if the price rises above $50, I’ll take my gains and move on to new opportunities with more upside.

For now, it’s all about patience and discipline. Let’s see where February takes us. 

*For my original thesis on Fox Corporation.

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