Dj Fox Corp. Cl A Stock Underperforms Friday When Compared To Competitors Despite Daily Gains

For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Fox Corporation (FOX) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Fox Corporation is a member of the Consumer Discretionary sector. This group includes 270 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Fox Corporation is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for FOX's full-year earnings has moved 2.9% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, FOX has gained about 59.6% so far this year. In comparison, Consumer Discretionary companies have returned an average of 13.8%. This means that Fox Corporation is performing better than its sector in terms of year-to-date returns.

Rush Street Interactive, Inc. (RSI) is another Consumer Discretionary stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 200.2%.

For Rush Street Interactive, Inc. the consensus EPS estimate for the current year has increased 500% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Fox Corporation belongs to the Broadcast Radio and Television industry, a group that includes 19 individual companies and currently sits at #82 in the Zacks Industry Rank. Stocks in this group have gained about 52.6% so far this year, so FOX is performing better this group in terms of year-to-date returns.

In contrast, Rush Street Interactive, Inc. falls under the Gaming industry. Currently, this industry has 41 stocks and is ranked #135. Since the beginning of the year, the industry has moved +23%.

Investors with an interest in Consumer Discretionary stocks should continue to track Fox Corporation and Rush Street Interactive, Inc. These stocks will be looking to continue their solid performance.

Zacks Investment Research

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Fox (FOX). FOX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.55, which compares to its industry's average of 30.57. Over the past 52 weeks, FOX's Forward P/E has been as high as 11.79 and as low as 8.17, with a median of 10.05.

Investors will also notice that FOX has a PEG ratio of 1.63. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FOX's industry currently sports an average PEG of 1.96. Within the past year, FOX's PEG has been as high as 7.31 and as low as 1.57, with a median of 2.

Another valuation metric that we should highlight is FOX's P/B ratio of 1.75. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. FOX's current P/B looks attractive when compared to its industry's average P/B of 4.39. Over the past 12 months, FOX's P/B has been as high as 1.78 and as low as 1.20, with a median of 1.36.

Finally, investors should note that FOX has a P/CF ratio of 8.67. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.70. Over the past year, FOX's P/CF has been as high as 11.57 and as low as 6.68, with a median of 8.90.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Fox is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FOX feels like a great value stock at the moment.

Zacks Investment Research