Based in New York City, Paramount Global (PARA) is a leading global media and entertainment company known for its iconic portfolio of brands and commitment to storytelling innovation. Specializing in film, television, and digital content, Paramount delivers compelling entertainment to audiences worldwide. With a strong focus on streaming and multiplatform distribution, the company boasts a market cap of $7.4 billion and operates across numerous international markets.
Shares of Paramount Global have significantly underperformed the broader market over the past 52 weeks. PARA has declined 19.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 22.6%. However, in 2025, shares of PARA are up 6%, compared to SPX’s 2.7% gain on a YTD basis.
Narrowing the focus, Paramount Global has also lagged behind the Communication Services Select Sector SPDR ETF Fund’s (XLC) 30.1% gain over the past 52 weeks.
On Jan. 15, Paramount Global fell over 2% after a U.S. Congressman urged a federal review of its merger with Skydance Media, citing concerns over China’s Tencent Holdings' involvement.
Earlier, on Nov. 8, Paramount shares declined 4% following its mixed Q3 earnings report. The company missed revenue expectations, posting a 5.6% year-over-year decline to $6.73 billion, below the $6.97 billion consensus estimate. Operating profit came in at $337 million, falling short by 11.9%. However, adjusted EPS of $0.49 significantly surpassed estimates of $0.24, marking a 102% beat. Paramount+ exceeded growth expectations, adding 3.5 million new subscribers.
For the current fiscal year, which ended in December 2024, analysts expect PARA’s EPS to grow 242.3% year-over-year to $1.78. The company's earnings surprise history is promising. It topped the consensus estimates in all of the last four quarters.
Among the 24 analysts covering the stock, the consensus rating is a “Hold.” That’s based on four “Strong Buy” ratings, 10 “Holds,” and 10 “Strong Sells.”
The configuration has been consistent over the past few months.
On Jan. 16, Steven Cahall from Wells Fargo (WFC) maintained a “Hold” rating on Paramount Global, with a price target of $11.
The mean price target of $12.03 represents a premium of 8.5% to PARA's current levels. The Street-high price target of $19 implies a potential upside of 71.3% from the current price levels.
