Paramount Global (PARA), headquartered in New York City, is a global media and entertainment company specializing in creating and distributing content across multiple platforms. With a market cap of $7.19 billion, Paramount Global delivers a wide range of entertainment, news, and sports programming to audiences worldwide, strongly focusing on innovative storytelling and digital transformation to meet evolving consumer preferences.
Companies valued at less than $10 billion are generally considered “mid-cap” stocks, and Paramount Global falls into this category. Paramount’s expertise in creating compelling content and its focus on digital transformation highlight its competitive position and long-term potential in an increasingly digital and content-driven global market.
PARA shares are trading 38.3% below their 52-week high of $17.50, which they hit on Dec. 11, 2023. The stock has gained 5.2% over the past three months, outperforming the broader Nasdaq Composite ($NASX), which has gained 1.5% over the same time frame.
In the longer term, PARA is down 27.1% on a YTD basis, and its shares have declined by 15.6% over the past 52 weeks. In comparison, the Nasdaq has gained 20.7% in 2024 and rallied 38.4% over the past year.
However, PARA has been trading below its 200-day moving average since early May to confirm its bearish trend. Also, it has been trading below its 50-day moving since late August, with some fluctuations.
On Aug. 8, Paramount Global shares surged over 5% in pre-market trading because of its stronger-than-expected Q2 adjusted EPS and revealing plans to reduce its U.S. workforce by 15%.
PARA’s stock rose 5.7% on Jul. 2 following reports of active merger discussions with other media and tech companies to enhance the competitive positioning of its Paramount+ streaming service potentially.
Highlighting the contrast in performance, PARA's competitor, Walt Disney Company (DIS), has outperformed the stock. DIS has gained 6.3% on a YTD basis.
Analysts are cautious about PARA's prospects despite its recent outperformance. The stock has a consensus rating of "Hold" from 26 analysts in coverage. The mean price target is $11.81, suggesting a premium of 9.5% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
