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ViacomCBS (VIAC) Dips More Than Broader Markets: What You Should Know

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ViacomCBS (VIAC - Free Report) closed the most recent trading day at $37.92, moving -1.25% from the previous trading session. This move lagged the S&P 500's daily loss of 0.68%.

Prior to today's trading, shares of the company had lost 59.58% over the past month. This has lagged the Consumer Discretionary sector's loss of 6.67% and the S&P 500's gain of 6.62% in that time.

Investors will be hoping for strength from VIAC as it approaches its next earnings release, which is expected to be May 6, 2021. In that report, analysts expect VIAC to post earnings of $1.20 per share. This would mark year-over-year growth of 6.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.36 billion, up 10.31% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.06 per share and revenue of $27.76 billion. These totals would mark changes of -3.33% and +7.05%, respectively, from last year.

Any recent changes to analyst estimates for VIAC should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.95% lower. VIAC currently has a Zacks Rank of #3 (Hold).

Digging into valuation, VIAC currently has a Forward P/E ratio of 9.7. Its industry sports an average Forward P/E of 21.18, so we one might conclude that VIAC is trading at a discount comparatively.

Investors should also note that VIAC has a PEG ratio of 0.69 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Film and Television Production and Distribution stocks are, on average, holding a PEG ratio of 1.05 based on yesterday's closing prices.

The Film and Television Production and Distribution industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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