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

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In the latest trading session, Paramount Global-B (PARA) closed at $26.02, marking a +0.04% move from the previous day. This move lagged the S&P 500's daily gain of 0.99%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq lost 0.31%.

Coming into today, shares of the company had gained 6.42% in the past month. In that same time, the Consumer Discretionary sector gained 8.35%, while the S&P 500 gained 7.91%.

Investors will be hoping for strength from Paramount Global-B as it approaches its next earnings release, which is expected to be July 26, 2022. In that report, analysts expect Paramount Global-B to post earnings of $0.56 per share. This would mark a year-over-year decline of 42.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.36 billion, up 12.2% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.58 per share and revenue of $30.67 billion. These totals would mark changes of -25.86% and +7.3%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Paramount Global-B. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate has moved 1.75% lower within the past month. Paramount Global-B is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Paramount Global-B is holding a Forward P/E ratio of 10.09. For comparison, its industry has an average Forward P/E of 18.49, which means Paramount Global-B is trading at a discount to the group.

Meanwhile, PARA's PEG ratio is currently 1.24. 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. Media Conglomerates stocks are, on average, holding a PEG ratio of 1.37 based on yesterday's closing prices.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 43% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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