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ViacomCBS (VIAC) Outpaces Stock Market Gains: What You Should Know

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ViacomCBS (VIAC - Free Report) closed the most recent trading day at $42.63, moving +0.66% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.18%.

Coming into today, shares of the company had gained 8.84% in the past month. In that same time, the Consumer Discretionary sector gained 1.1%, while the S&P 500 gained 2.43%.

Investors will be hoping for strength from VIAC as it approaches its next earnings release. The company is expected to report EPS of $0.92, down 26.4% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.44 billion, up 2.56% from the year-ago period.

VIAC's full-year Zacks Consensus Estimates are calling for earnings of $3.95 per share and revenue of $27.78 billion. These results would represent year-over-year changes of -5.95% and +7.1%, respectively.

Investors might also notice recent changes to analyst estimates for VIAC. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. VIAC currently has a Zacks Rank of #4 (Sell).

Investors should also note VIAC's current valuation metrics, including its Forward P/E ratio of 10.73. For comparison, its industry has an average Forward P/E of 31.97, which means VIAC is trading at a discount to the group.

Investors should also note that VIAC has a PEG ratio of 0.77 right now. 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. Film and Television Production and Distribution stocks are, on average, holding a PEG ratio of 1.18 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 206, which puts it in the bottom 19% 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.

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