How Is Paramount Global's Stock Performance Compared to Other Entertainment Stocks?

Yahoo

9 hours ago

Valued at a market cap of $8.2 billion, Paramount Global (PARA) is a leading media and entertainment company, known for creating premium content across television, film, and streaming platforms. Its diverse portfolio includes iconic brands such as CBS, Nickelodeon, MTV, Paramount Pictures, and Pluto TV.
Companies valued at less than $10 billion are generally considered 'mid-cap' stocks, and Paramount Global fits this criterion perfectly. Operating through TV Media, Direct-to-Consumer, and Filmed Entertainment segments, Paramount Global delivers content to audiences worldwide.
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Shares of the New York-based company have fallen 1.9% from its 52-week high of $12.54. PARA stock has gained 3.4% over the past three months, lagging behind the Invesco Dynamic Leisure and Entertainment ETF (PEJ), which rose 9.3% during the same period.
In the longer term, Paramount Global's shares have increased 17.2% over the past six months, outpacing PEJ's 6.2% surge. Over the past 52 weeks, PARA stock has soared nearly 23%, almost aligning PEJ's 22.8% return over the same period.
Despite few fluctuations, the stock has been trading above its 50-day and 200-day moving averages since mid-February.
Shares of Paramount Global rose 2.2% following its Q1 2025 results on May 8 due to better-than-expected financial performance, including revenue of $7.2 billion and adjusted EPS of $0.29. The growth was driven by a 9% increase in direct-to-consumer revenue to over $2 billion and a 4% rise in filmed entertainment sales to $627 million, supported by strong originals and post-theatrical releases.
Additionally, optimism surrounding the upcoming release of Mission Impossible – The Final Reckoning and the reaffirmation of the $8 billion Skydance merger closing in H1 2025 contributed to investor confidence.
However, rival Live Nation Entertainment, Inc. (LYV) has outperformed PARA stock. LYV stock has surged nearly 12% on a YTD basis and 60.6% over the past 52 weeks.
Due to the stock's underperformance relative to its industry peers, analysts are moderately bearish about the stock's prospects. The stock has a consensus rating of 'Moderate Sell' from the 23 analysts covering it, and it is currently trading above the mean price target of $11.67.
On the date of publication, Sohini Mondal 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. This article was originally published on Barchart.com