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Paramount Global-B (PARA) Laps the Stock Market: Here's Why

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The latest trading session saw Paramount Global-B (PARA - Free Report) ending at $13.01, denoting a +1.25% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 0.24%.

Shares of the company witnessed a loss of 8.99% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 2.84% and the S&P 500's gain of 6.45%.

The upcoming earnings release of Paramount Global-B will be of great interest to investors. The company's earnings report is expected on February 28, 2024. The company's earnings per share (EPS) are projected to be -$0.05, reflecting a 162.5% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $7.78 billion, indicating a 4.27% decline compared to the corresponding quarter of the prior year.

Any recent changes to analyst estimates for Paramount Global-B should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 3.51% lower within the past month. Right now, Paramount Global-B possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Paramount Global-B is holding a Forward P/E ratio of 12.08. Its industry sports an average Forward P/E of 19.83, so one might conclude that Paramount Global-B is trading at a discount comparatively.

It is also worth noting that PARA currently has a PEG ratio of 1.61. 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. As the market closed yesterday, the Media Conglomerates industry was having an average PEG ratio of 1.78.

The Media Conglomerates industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 173, this industry ranks in the bottom 32% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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