Paramount: On The Verge Of Peak Pessimism - Hang On Tight

Summary

  • The recent dispute between Disney and Charter led to further downside volatility for Paramount Global investors.
  • Paramount's main competitive moat is its well-diversified TV assets, which provide stability and drive revenue. However, the Disney-Charter settlement could put TV's economics at risk.
  • Recent de-rating in PARA's valuation is justified due to concerns about Paramount's ability to sustain DTC growth and the risk to its economic moat.
  • Despite that, PARA trades at an attractive "B+" valuation grade. Moreover, its price action suggests buyers returned last week, defending against the selloff.
  • I argue for why PARA could be close to peak pessimism. Investors throwing in the towel now could be doing so at its ultimate lows. Hang on tight.
  • I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »
Hollywood Writers Strike Continues Into Third Month

Mario Tama/Getty Images News

I updated investors in Paramount Global (NASDAQ:PARA) that the time to catch the "massive drop" was finally here in July 2023. However, that thesis failed to pan out, as the recent dispute between Disney (DIS

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This article was written by

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JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.

He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks.

He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing.

He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities.

He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out.

The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of DIS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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