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Paramount Global-B (PARA) Moves 6.7% Higher: Will This Strength Last?

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Paramount Global-B (PARA - Free Report) shares rallied 6.7% in the last trading session to close at $14.59. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 5% loss over the past four weeks.

The upswing in share price came on news that Allen Media Group made an unsolicited $30 billion acquisition offer to acquire the entertainment conglomerate. Allen Media Group is offering $21.53 per share for all of Paramount Global’s Class B nonvoting stock — a 57% premium over the Jan 30 closing price of $13.68 — and $28.58/share for the Class A voting stock.

This company is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of -150%. Revenues are expected to be $7.8 billion, down 4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Paramount Global-B, the consensus EPS estimate for the quarter has been revised 4.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on PARA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Paramount Global-B is a member of the Zacks Media Conglomerates industry. One other stock in the same industry, Sphere Entertainment (SPHR - Free Report) , finished the last trading session 0.7% higher at $35.38. SPHR has returned 4.9% over the past month.

For Sphere Entertainment, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.73. This represents a change of -132.4% from what the company reported a year ago. Sphere Entertainment currently has a Zacks Rank of #1 (Strong Buy).


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