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Gathering momentum from the better-than-expected first-quarter 2013 results, shares of CBS Corporation (CBS - Analyst Report) surged to attain a new 52-week high of $49.06 on May 13, 2013, before closing at $48.98, up 2.6% from the previous day’s session. This Zacks Rank #2 (Buy) stock has generated a year-to-date return of approximately 25%.

Based on the current price, this diversified media conglomerate is 1.5% below the Zacks Consensus average analyst price target of $49.72. The company currently trades at a forward P/E of 16.11x, a 2.4% discount to the peer group average of 16.50x. Additionally, the company’s long-term estimated EPS growth rate is 10.8%, which is relatively healthy.

CBS Corporation came out with impressive bottom-line results for the latest concluded quarter on May 1. The quarterly earnings came in at 73 cents a share, surpassing the Zacks Consensus Estimate of 68 cents and jumping 23.7% from 59 cents earned in the year-ago quarter.

Higher advertising revenues and a rise in affiliate and subscription fees were the driving factors. Moreover, lower interest expenses and share buybacks cushioned the bottom line.

CBS Corporation remains well positioned to drive growth in the coming quarters through its strategic initiatives focused on increasing subscription-based revenue channels. The company remains optimistic and expects the growth momentum to continue in 2013 based on reverse compensation from affiliates, strong demand of its content, digital distribution, syndication sales and retransmission consent.

Moreover, CBS continues to benefit from its streaming deals with Netflix, Inc. (NFLX - Analyst Report) and Inc. (AMZN - Analyst Report), as evident from the company’s strong double-digit growth in streaming revenues during the quarter.

Alongside, to boost its growth prospects in the cable television market, the company acquired 50% stake in TVGN, TV Guide Network’s pay channel, and the website from JPMorgan Chase & Company's (JPM - Analyst Report) One Equity Partners.

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