We recently published a list of 11 Best Communication and Media Stocks to Buy According to Analysts. In this article, we are going to take a look at where News Corporation (NASDAQ:NWSA) stands against other best communication and media stocks to buy according to analysts.
The communication and media sectors play a crucial role in connecting people and distributing information. These sectors are becoming increasingly significant in the modern economy and society. As technology advances, both the communication and media industries are expected to experience strong growth in the foreseeable future.
According to a report by The Business Research Company, the global media market alone was valued at $2.61 trillion in 2024. The market is expected to grow at a compound annual growth rate (CAGR) of 7.7% during 2025-2029 to reach a value of $2.83 trillion by the end of the forecast period. In 2024, North America was the largest region in the global media market.
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Another report from The Business Research Company shows that the global telecommunication market was estimated to have a value of $2.98 trillion in 2024. The market is expected to grow at a CAGR of 5.6% from 2025 to 2029 and reach above $3.93 trillion by the end of this period. In 2024, Asia-Pacific held the largest share of the global media market while North America was the second largest region.
Recent trends indicate a shift towards new and advanced technologies like 5G and the Internet of Things (IoT). According to PwC’s Global Telecom Outlook 2023-2027, telecom companies are expected to make significant investments in the infrastructure to better serve customers. As the shift towards 5G technology progresses and the demand for new technological standards rises, telecom companies are projected to invest $342.1 billion in their networks in 2027 alone.
PwC’s inaugural Global Telecom Outlook notes that telecom companies might need to change their strategies in a competitive environment and look for new growth opportunities in areas such as IoT solutions, private 5G networks for business customers, and fixed wireless home broadband for households. In some markets, these companies can also provide digital infrastructure, data, content, and platform services customized to the needs of various industries like entertainment and media, healthcare, and manufacturing. To stay competitive in this changing market, telecom companies must become more comfortable operating within broader ecosystems and looking beyond traditional services.
Methodology
To compile our list of the 11 best communication and media stocks to buy according to analysts, we looked for the largest media and communication companies. We reviewed our own rankings, financial media reports, and various online resources to compile a list of the best communication and media stocks. Next, we focused on the top communication and media stocks that analysts believe have the most potential for growth. We ranked the 11 best communication and media stocks to invest in based on their average price target upside potential according to analysts as of January 29, 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An array of news articles and video clips with the company logo.
News Corporation (NASDAQ:NWSA)
Average Price Target Upside Potential According to Analysts: 41.84%
Number of Hedge Fund Holders: 46
News Corporation (NASDAQ:NWSA), or simply News Corp, is an American mass media and publishing company that ranks among the best communication and media stocks to buy according to analysts. The company’s portfolio of brands operates in various sectors including digital real estate, news media, book publishing, and cable television. Some of the News Corporation’s (NASDAQ:NWSA) key assets are Dow Jones & Company, which publishes The Wall Street Journal, News UK, which publishes The Sun and The Times, and HarperCollins, a book publisher. The company also operates digital real estate services and subscription video services in Australia.
The company is strategically focused on optimizing its portfolio and enhancing its core segments. In December 2024, News Corporation (NASDAQ:NWSA) announced an agreement to sell Foxtel for an enterprise value of A$3.4 billion. This move is part of a broader strategy to simplify the structure of the company and focus more on key growth areas such as Dow Jones, digital real estate services, and book publishing.
The company is also focused on a disciplined investment and management strategy to improve profitability. In the first quarter of its fiscal 2025, which ended on September 30, 2024, News Corporation (NASDAQ:NWSA) reported record first-quarter revenue and record first-quarter profitability. Revenue increased 3% year-over-year to reach $2.58 billion, while profitability surged 14% to $415 million. The profit margin increased from 14.6% a year ago to 16.1%, with recurring circulation and subscription revenues continuing to grow. The company has effectively reduced its reliance on the volatile advertising market. News Corporation (NASDAQ:NWSA) also reported that Dow Jones has managed to double its earnings since its re-segmentation 4 years ago.
Overall, NWSA ranks 3rd on our list of best communication and media stocks to buy according to analysts. While we acknowledge the potential of communication and media companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NWSA 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 is originally published at Insider Monkey.
