Newsmax Stock (NMAX) Pops on Inclusion in the Russell 2000 Small-Cap Index

The stock of Newsmax (NMAX) is up 8% on reports that the conservative media company is being added to the Russell 2000 index of small-cap stocks.

Newsmax went public in March of this year. The stock has been volatile since its debut on the New York Stock Exchange, falling 14% in the past month. However, the company is developing an audience and growing at a brisk pace.

Newsmax has expanded its distribution, including a deal with Hulu+ that enables it to reach 60 million U.S. homes. The company also reported revenue growth of 20% in the last twelve months, generating $175.7 million in sales. Newsmax is currently ranked as America’s fourth highest-rated cable news network by Nielsen.

Alternative to Fox News?

With a market capitalization of $2.35 billion, Newsmax is definitely a small-cap stock. The company, which has a television and online presence, has reported an uptick in viewership since U.S. President Donald Trump was re-elected. Many conservatives view Newsmax as an alternative to Fox News (FOX).

According to Nielsen ratings, Newsmax’s audience grew 690% year-over-year in this year’s first quarter and the network’s prime time viewership has risen 1,027% over the last five years. The company was recently named by Reuters (TSE:TRI) as one of the top U.S. news brands.

Despite its strong growth, NMAX stock has declined more than 70% since its market debut.

Is NMAX Stock a Buy?

Newsmax’s stock hasn’t been public long enough for Wall Street analysts to cover it. So instead, we’ll look at rival Fox News. Currently, FOX stock has a consensus Moderate Buy rating based on one analyst rating, which is a Buy. The average FOX price target of $66 implies 30% upside from current levels.

Read more analyst ratings on Fox stock