About Fox Corp
Fox Corporation operates as a news, sports, and entertainment company in the United States. The company operates through three segments: Cable Network Programming; Television; and Other, Corporate and Eliminations. The Cable Network Programming segment produces and licenses news, business news, and sports content for distribution primarily through cable television systems, direct broadcast satellite operators, telecommunications companies, and online multi-channel video programming distributors. It operates FOX News, a national cable news channel; FOX Business, a business news national cable channel; FS1 and FS2 multi-sport national networks; FOX Sports Racing, a video programming service that comprises motor sports programming; and FOX Soccer Plus, a video programming network for live soccer and rugby competitions; FOX Deportes, a Spanish-language sports programming service; and Big Ten Network, a national video programming service. The Television segment acquires, produces, markets, and distributes broadcast network programming.
It operates The FOX Network, a national television broadcast network that broadcasts sports programming and entertainment; MyNetworkTV, a programming distribution service; Fox Alternative Entertainment, a full-service production studio that develops and produces unscripted and alternative programming; Bento Box, which develops and produces animated programing; and Tubi, a free advertising-supported video-on-demand service. This segment owns and operates 29 broadcast television stations. The Other, Corporate and Eliminations segment owns the FOX Studios lot that provides production and post-production services, including 15 sound stages, 2 broadcast studios, theaters and screening rooms, editing bays, and television and film production facilities in Los Angeles, California. The company was incorporated in 2018 and is based in New York, New York.
FOXA operates in the Transportation, Communications, Electric, Gas, And Sanitary Services | Communication | headquartered in New York | approximately 10,600 employees | led by CEO Lachlan K. Murdoch.
The $28.1B question: What happens when a company this good becomes this expensive?
In the constellation of American capitalism, certain companies shine brighter than others — not because they are inherently more valuable, but because they have positioned themselves at the nexus of forces that shape the economy. Fox Corp is one such company.
At $28.1B in market capitalization, Fox Corp (FOXA) currently ranks #266 in our quantitative model, with a composite score of 75.3/100. That places it firmly in "Strong Buy" territory — our highest conviction rating.
But here's the thing about stocks priced for perfection: They leave no room for error.
The Numbers That Matter
Let's start with what's undeniably true. Our 6-factor model gives FOXA the following scores:
| Factor | Score | Weight | Assessment |
|---|---|---|---|
| Quality | 90/100 | 30% | Exceptional |
| Value | 29/100 | 15% | Premium |
| Momentum | 92/100 | 25% | Accelerating |
| Investment | 60/100 | 10% | Growing |
| Stability | 65/100 | 10% | Solid |
| Short Interest | 21/100 | 10% | High shorts |
The quality score of 90/100 is the headline here. It reflects profitability metrics that would make most CFOs weep with envy:
- ROE: 26.2%
- Net Margin: 16.3%
- Gross Margin: 1.0%
These aren't just good numbers. They're the kind of numbers that make FOXA a "must-own" stock for institutional portfolios.
The Bull Case
"If you could design a business in a laboratory, it would look something like FOXA."
The bull case writes itself:
- Quality is persistent. Academic research shows high-quality stocks outperform by 4-6% annually over long periods. FOXA is quality defined.
- Momentum is real. With a momentum score of 92/100, the stock has been recognized by the market — and momentum tends to persist.
- The moat is deep. Companies with these margins don't lose them easily. The competitive position is entrenched.
The Bear Case
But here's what keeps value investors up at night:
- Valuation compression risk. At current levels, the stock is priced for continued perfection. Any stumble — a missed quarter, a competitive threat, a macro slowdown — could compress the multiple from 13.8x to the low 20s. That's a 20-30% decline without anything fundamentally "wrong."
- The crowded trade problem. When everyone owns a stock, who's left to buy? Momentum works until it doesn't.
- Mean reversion. Trees don't grow to the sky. At some point, growth decelerates.
The Valuation Framework
| Scenario | Assumption | Fair Value | Upside/Downside |
|---|---|---|---|
| Bear | Multiple compression to 20x | -20% | Downside |
| Base | Current trajectory continues | +10-15% | Modest upside |
| Bull | Momentum accelerates | +30-40% | Significant upside |
The risk-reward is ... fine. Not exceptional. Not terrible. Just fine.
The Bottom Line
Fox Corp is exactly what it appears to be: a high-quality business with strong momentum trading at a premium price. Whether that's attractive depends entirely on what kind of investor you are.
For long-term, buy-and-hold investors, FOXA is a core holding. For value investors or short-term traders, look elsewhere.
The company is priced for perfection — and in markets, as in life, perfection is a fragile thing.
⭐⭐⭐⭐⭐ Rating: 5-Star Strong Buy
Score: 75.3/100 | Rank: #266 of 3,571 stocks
Sector: Communication Services
This analysis reflects the views of Blank Capital Research as of February 16, 2026. It is not investment advice. Past performance does not guarantee future results.