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Paramount Global-B (PARA) Stock Sinks As Market Gains: What You Should Know

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Paramount Global-B (PARA - Free Report) closed at $13.55 in the latest trading session, marking a -0.81% move from the prior day. This change lagged the S&P 500's 0.67% gain on the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 1.14%.

Coming into today, shares of the company had lost 10.54% in the past month. In that same time, the Consumer Discretionary sector lost 5.9%, while the S&P 500 lost 0.73%.

Investors will be hoping for strength from Paramount Global-B as it approaches its next earnings release. The company is expected to report EPS of $0.10, down 74.36% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.32 billion, up 5.78% from the year-ago period.

PARA's full-year Zacks Consensus Estimates are calling for earnings of $0.46 per share and revenue of $30.56 billion. These results would represent year-over-year changes of -73.1% and +1.33%, 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 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. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 10.2% lower. Paramount Global-B is currently sporting a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Paramount Global-B currently has a Forward P/E ratio of 30.02. This valuation marks a premium compared to its industry's average Forward P/E of 22.16.

It is also worth noting that PARA currently has a PEG ratio of 5.26. 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. The Media Conglomerates industry currently had an average PEG ratio of 1.64 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 27% 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.

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