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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 - Free Report) closed at $24.52, marking a +0.33% move from the previous day. The stock lagged the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.15%.

Heading into today, shares of the company had lost 24.45% over the past month, lagging the Consumer Discretionary sector's loss of 7.03% and the S&P 500's loss of 3.49% in that time.

Paramount Global-B will be looking to display strength as it nears its next earnings release. In that report, analysts expect Paramount Global-B to post earnings of $0.55 per share. This would mark a year-over-year decline of 43.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.34 billion, up 11.79% from the year-ago period.

PARA's full-year Zacks Consensus Estimates are calling for earnings of $2.62 per share and revenue of $30.67 billion. These results would represent year-over-year changes of -24.71% and +7.3%, respectively.

Investors might also notice recent changes to analyst estimates for Paramount Global-B. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. The Zacks Consensus EPS estimate has moved 1.02% lower within the past month. Paramount Global-B is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Paramount Global-B is holding a Forward P/E ratio of 9.31. This valuation marks a discount compared to its industry's average Forward P/E of 18.82.

It is also worth noting that PARA currently has a PEG ratio of 1.14. 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. Media Conglomerates stocks are, on average, holding a PEG ratio of 1.34 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 219, which puts it in the bottom 14% 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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