Twenty-First Century Fox Inc (NASDAQ:FOXA) – Long term uptrend intact

Twenty-First Century Fox Inc (NASDAQ:FOXA) had a positive day with a gain of over 1% yesterday that could well mark the end of the short term correction. The last month and a half had mostly been good for the stock as it bounced nearly 10% from the lows around $32.50. The current corrective phase is not supported by enough volume and that is the disadvantage of the bears right now.

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The last reported result of Twenty-First Century Fox Inc (NASDAQ:FOXA) was not very unsatisfactory for the streets. The revenue saw a mild dip of 1.33% as it came down to $8.06 billion from the earlier $8.16 billion but the improvement in the earning per share was dramatically better. The EPS has increased to $2.89 from the earlier $0.43 and that is probably one of the reasons the company is considered to possess the highest profit growth outlook in the sector over the next 3 years.

2015 may be a quiet year for Twenty-First Century Fox Inc (NASDAQ:FOXA) with a possible EBITDA growth of only 4-5% but that is expected to rise to 12% in 2016 and higher to 14% in 2017. This expectation resulted in a “buy” rating from Deutsche bank with a price target of $42.

The period of 2011-13 saw a non-stop rally for the stock, followed by a sideways move in the band of $31-$36 for almost the entire year of 2014. The breakout at the end of the year turned out to be a false one and that kept the possibility of a retest of $31 alive. On the other hand, the series of higher highs and higher lows keep the long term uptrend fully intact. So, any dip, particularly in the area of $31-$32 should be utilized to get in but for risk management, keeping a stoploss below $30 may be a prudent step.

About the Author

Cooper is a graduated from Buffalo State College in New York with a bachelor's degree in Broadcast Journalism.

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