Paramount Global Faces Challenges Amid Market Fluctuations
Paramount Global (PARA), headquartered in New York City, is a prominent media and entertainment company recognized for its rich collection of brands and innovative storytelling. The company excels in film, television, and digital content, aiming to captivate audiences globally. With a strong emphasis on streaming and multi-platform distribution, Paramount has established a market cap of $7.4 billion and operates in various international markets.
Stock Performance: Parameter for Concern
Over the past 52 weeks, shares of Paramount Global have notably underperformed relative to the broader market. During this period, PARA has declined 19.4%, while the S&P 500 Index ($SPX) has seen a substantial 22.6% rally. However, in 2025, shares of PARA have increased 6%, outpacing SPX’s year-to-date gain of 2.7%.
Comparative Analysis with Sector ETFs
Digging deeper, Paramount Global’s performance has also lagged behind the Communication Services Select Sector SPDR ETF Fund’s (XLC) impressive 30.1% gain over the last year.
Difficulties Post-Earnings and Review Concerns
On January 15, Paramount Global experienced a drop of over 2% after a U.S. Congressman recommended a federal review of its merger with Skydance Media, highlighting issues related to China’s Tencent Holdings’ involvement.
Earlier, on November 8, the company’s stock fell by 4% following a mixed Q3 earnings report. Revenue figures disappointed as Paramount posted a 5.6% year-over-year decline to $6.73 billion, which missed the consensus estimate of $6.97 billion. In contrast, operating profit at $337 million fell short by 11.9%. Interestingly, the adjusted EPS of $0.49 significantly surpassed estimates of $0.24, reflecting a remarkable 102% upside. Additionally, Paramount+ met growth targets with the addition of 3.5 million new subscribers.
Positive Projections Ahead
Looking forward to the fiscal year ending December 2024, analysts anticipate PARA’s EPS to grow 242.3% year-over-year, reaching $1.78. Notably, the company’s earnings surprise history is encouraging, as it has beaten consensus estimates for four consecutive quarters.
Analyst Consensus: A Cautious Outlook
Among the 24 analysts monitoring the stock, the overall consensus rating is a “Hold.” This is comprised of four “Strong Buy” ratings, 10 “Holds,” and 10 “Strong Sells.”
Recent Analyst Ratings
The evaluation of Paramount Global has remained steady in recent months. On January 16, Steven Cahall from Wells Fargo (WFC) reaffirmed a “Hold” rating on the company, with a price target set at $11.
The mean price target is $12.03, suggesting an 8.5% premium compared to PARA’s current levels. The Street-high price target of $19 indicates a potential upside of 71.3% from current prices.
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.
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