We recently compiled a list of the 6 Undervalued Entertainment Stocks To Buy Right Now. In this article, we are going to take a look at where Fox Corporation (NASDAQ:FOX) stands against the other undervalued entertainment stocks.
Entertainment stocks provide interesting investment opportunities. Unlike many other businesses, these companies allow the retail investor to have some association with the company that makes them feel a part of it. For example, Disney was a big part of many people’s childhood. Owning the company’s stock is often a way for them to not only honor the company but also feel a part of the company rather than just a viewer of its content.
At the same time, these stocks can also be prone to ups and downs, largely dependent on how the public perceives the content they make. If the content is loved, the company makes money and the stock goes up. If it doesn’t receive a good response from the public, the company can’t make enough money, resulting in a stock price decline. Regulatory risks, innovative technologies, and high production costs continue to plague the sector. However, these issues often bring the stock down to levels where investors would love to take a position in the stock.
We look at 6 such companies that are trading at a low valuation and are a steal at these levels. To come up with our list of 6 undervalued entertainment stocks, we considered stocks with a price-to-book value of below 3.0 and a market cap between $5 billion and $30 billion.
Fox Corporation (NASDAQ:FOX)
Fox Corporation is a mass media company that provides sports, news, and entertainment services. It operates in credible, cable network programming, television, and The Fox Studio Lot. The stock is up 59% in a year so some of the value has already been squeezed out. However, it still trades at a book value of just under 2.
During the last quarter, Fox has benefitted from its entry into sports streaming and should also get a significant boost from ad revenue during the election campaign. TV viewership in the US climbed 4% in the last month of 2024 according to Nielsen. While some of it was driven by the holiday season, it was the Giants vs Cowboys game that directly helped Fox benefit from the increased viewership. This was the most viewed NFL game in December so FOX continues to be a beneficiary of NFL popularity in the US.
Overall FOX ranks 4th on our list of the undervalued entertainment stocks to buy right now. While we acknowledge the potential of FOX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as FOX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.