Time Warner Cable Inc (TWC), The Walt Disney Company (DIS), Twenty-First Century Fox Inc (FOX): Media Giants Can Make FOXy Investments

Twenty-First Century Fox Inc (NASDAQ:FOX) cable network business has been performing strong and offers good prospects. Fox News has been gaining market share at the expense of its main competitor, Time Warner Cable Inc (NYSE:TWC)’s CNN, and is expected to produce affiliate fee increases over the next several years. Furthermore, spread across the US markets, the firm’s regional sports networks have carved a profitable niche by acquiring local broadcasting rights for baseball and basketball teams and college sports.

In the sport segment, the upcoming launch of Twenty-First Century Fox Inc (NASDAQ:FOX) Sports 1 in mid August, which seeks to challenge ESPN as the dominant sport network, should be particularly exciting to investors.

Trading at $30 or 12 times its earnings, at a 32% discount to the industry average, Twenty-First Century Fox Inc (NASDAQ:FOX)’s stock has surged around 5% since its spinoff. Being more focused, and freed from the low-revenue publishing business, it appears to be a good time to take this stock seriously.

Bottom line

Although these three stocks have been performing soundly and are tied to well-managed companies, my bet here is on Twenty-First Century Fox Inc (NASDAQ:FOX). Why? Because it looks fairly undervalued, it has promising opportunities ahead and doesn’t have to carry with the publishing business anymore. Plus, it has Rupert Murdoch.

Damian Illia has no position in any stocks mentioned. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney.

The article Media Giants Can Make FOXy Investments originally appeared on Fool.com.

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