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Paramount Global-B (PARA) Gains But Lags Market: What You Should Know

·3 min read

In the latest trading session, Paramount Global-B (PARA) closed at $24.53, marking a +1.62% move from the previous day. The stock lagged the S&P 500's daily gain of 2.62%. At the same time, the Dow added 1.37%, and the tech-heavy Nasdaq gained 0.25%.

Heading into today, shares of the company had lost 5.56% over the past month, lagging the Consumer Discretionary sector's gain of 0.65% and the S&P 500's gain of 0.24% in that time.

Investors will be hoping for strength from Paramount Global-B as it approaches its next earnings release, which is expected to be August 4, 2022. On that day, Paramount Global-B is projected to report earnings of $0.56 per share, which would represent a year-over-year decline of 42.27%. Our most recent consensus estimate is calling for quarterly revenue of $7.36 billion, up 12.2% from the year-ago period.

PARA's full-year Zacks Consensus Estimates are calling for earnings of $2.58 per share and revenue of $30.67 billion. These results would represent year-over-year changes of -25.86% and +7.3%, respectively.

Investors should also note any recent changes to analyst estimates for Paramount Global-B. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.07% lower. Paramount Global-B currently has a Zacks Rank of #3 (Hold).

Investors should also note Paramount Global-B's current valuation metrics, including its Forward P/E ratio of 9.36. Its industry sports an average Forward P/E of 18.72, so we one might conclude that Paramount Global-B is trading at a discount comparatively.

Also, we should mention that PARA has a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PARA's industry had an average PEG ratio of 1.4 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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