The fiscal 2025 third quarter earnings season is winding down with just a few big players left to report. This time of the year is always exciting for our clients because the latest data from thousands of new filings drives all kinds of upgrades and downgrades to our models.
New Stock Ratings bring new investment opportunities to clients. Especially since our Robo-Analyst AI research is driving dramatic outperformance of the S&P 500 in our live-traded portfolios.
In particular, the Very Attractive Stocks Index, managed by Bloomberg, tracks the stocks that get our Very Attractive rating and has outperformed the S&P 500 by 52% over the past five years.
Although you can’t trade the Very Attractive Stocks Index, you can get access to all of our Very Attractive-rated stocks and our Most Attractive Stocks Model Portfolio via subscriptions here and here.
Below we feature one of the stocks from this month’s Most Attractive Stocks Model Portfolio. This feature provides insight into the rigor of our research and approach to picking stocks. Whether you’re a member or not, we think it is important, especially in today’s overvalued market environment, that you’re able to see our research on stocks.
Keep an eye out for the free pick from our Most Dangerous Stocks Model Portfolio, which will be published this week as well!
We hope you enjoy this research. Feel free to share with friends and colleagues!
We update this Model Portfolio monthly. The latest Most Attractive and Most Dangerous stocks Model Portfolios were updated and published for clients on November 5, 2025.
Free Most Attractive Stocks Pick: Fox Corp (FOXA)
Fox Corp (FOXA: $65/share) has grown revenue and net operating profit after tax (NOPAT) by 6% and 5% compounded annually since fiscal 2020, respectively. Fox Corp’s NOPAT margin fell from 16% in fiscal 2020 to 15% over the trailing-twelve months (TTM), while its invested capital turns rose from 1.1 to 1.3 over the same time. Rising invested capital turns are enough to offset falling margins and drive Fox Corp’s return on invested capital (ROIC) from 17% in fiscal 2020 to 19% over the TTM.
Figure 1: Fox Corp’s Revenue and NOPAT Since Fiscal 2020
Sources: New Constructs, LLC and company filings
FOXA Is Undervalued
At its current price of $65/share, FOXA has a price-to-economic book value (PEBV) ratio of 0.9. This ratio means the market expects Fox Corp’s NOPAT to permanently decline 10% from TTM levels. This expectation seems overly pessimistic for a company that has grown NOPAT by 5% compounded annually since fiscal 2020 and 4% compounded annually since fiscal 2018 (earliest data available).
Even if Fox Corp’s NOPAT margin falls to 14% (compared to 15% in the TTM) and the company grows revenue 2% (below five-year CAGR of 6%) compounded annually through fiscal 2035, the stock would be worth $83/share today – a 28% upside. In this scenario, Fox Corp’s NOPAT would grow just 1% compounded annually through fiscal 2035. Contact us for the math behind this reverse DCF scenario.
Should Fox Corp grow profits more in line with historical levels, the stock has even more upside.
Critical Details Found in Financial Filings by Our Robo-Analyst Technology
Below are specifics on the adjustments we made based on Robo-Analyst findings in Fox Corp’s 10-K and 10-Q:
Income Statement: we made nearly $1.6 billion in adjustments, with a net effect of removing under $200 million in non-operating expense. Professional members can see all adjustments made to the company’s income statement on the GAAP Reconciliation tab on the Ratings page on our website.
Balance Sheet: we made just under $10 billion in adjustments to calculate invested capital with a net decrease of over $8.1 billion. One of the most notable adjustments was for deferred tax assets. Professional members can see all adjustments made to the company’s balance sheet on the GAAP Reconciliation tab on the Ratings page on our website.
Valuation: we made just under $14 billion in adjustments to shareholder value, with a net decrease of over $3 billion. The most notable adjustment was for total debt. Professional members can see all adjustments to the company’s valuation on the GAAP Reconciliation tab on the Ratings page on our website.
This article was originally published on November 14, 2025.
Disclosure: David Trainer, Kyle Guske II, and Hakan Salt receive no compensation to write about any specific stock, style, or theme.
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