News Corp Trails Communication Services ETF Over the Past Year

News Corporation shares lost about 5.1% over the year through September 22, closing at $29.25. The Communication Services Select Sector SPDR Fund (XLC) fell about 4.3% over the same period, leaving NWSA slightly behind the sector benchmark on a price-only basis.

The comparison covers a turbulent stretch for the media company’s shares. NWSA fell 1.5% on September 22, after trading between $29.10 and $30.19, according to historical price data.

News Corp operates across news, financial information, book publishing and digital real estate. Its businesses include Dow Jones, publisher of The Wall Street Journal, and property platforms such as realestate.com.au.

The company’s latest results were strong. News Corp reported fiscal fourth-quarter revenue of $2.34 billion on August 5, up 11% from a year earlier, while adjusted earnings per share rose to 35 cents from 19 cents.

For the full fiscal year, revenue increased 7% to $9.03 billion, and operating cash flow climbed 26% to $1.24 billion. Growth came from its Digital Real Estate Services, Dow Jones and Book Publishing divisions.

Those results have not erased the stock’s relative lag. Share performance reflects investor expectations as well as reported earnings, and the one-year comparison shows NWSA did not keep pace with XLC’s price return. Both figures exclude dividends.

Analyst sentiment remains positive. MarketBeat’s September 22 tally showed five buy ratings and one hold among six analysts, with an average 12-month price target of $38.50.

Investors will look for evidence that the company can sustain growth in digital property services and paid subscriptions. The next report will also show whether recent gains in revenue and cash flow are translating into stronger share performance.