Paramount Global Stock Outlook: Is Wall Street Bullish or Bearish?
New York-based Paramount Global (PARA) is a leading media, streaming, and entertainment company offering television, film production, and digital content across various global platforms. With a market cap of $7.8 billion, the company owns a diverse portfolio of entertainment brands and provides streaming services, including Paramount+, Pluto TV, BET+, and Noggin.
Shares of this entertainment giant have underperformed the broader market over the past year. PARA has gained 3.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 10.6%. However, in 2025, PARA stock is up 12.2%, surpassing the SPX’s 5.3% fall on a YTD basis.
Narrowing the focus, PARA’s underperformance is also apparent compared to the Communication Services Select Sector SPDR ETF (XLC). The exchange-traded fund has gained about 22.6% over the past year. However, PARA’s double-digit returns on a YTD basis outshine the ETF’s 1.4% dip over the same time frame.
PARA’s underperformance can be linked to obstacles in achieving financial objectives, despite advancements in streaming services such as Paramount+. Although Paramount+ has experienced success, traditional media and advertising sectors continue to pose challenges. Decreases in TV media and advertising revenues underscore the difficulties in navigating a landscape increasingly dominated by digital platforms.
On Feb. 26, PARA shares closed down more than 2% after reporting its Q4 results. Its revenue was $8 billion, missing analyst estimates of $8.1 billion. The company’s adjusted loss per share of $0.11, significantly missed analyst’s adjusted EPS estimates of $0.13.
For fiscal 2025, ending in December, analysts expect PARA’s EPS to decline marginally to $1.53 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters, while missing the forecast on another occasion.
Among the 23 analysts covering PARA stock, the consensus is a “Hold.” That’s based on three “Strong Buy” ratings, 11 “Holds,” and nine “Strong Sells.”
This configuration is less bullish than a month ago, with four analysts suggesting a “Strong Buy.”
On Apr. 16, Wells Fargo & Company (WFC) analyst Steven Cahall maintained a “Hold” rating on PARA and set a price target of $11.
The mean price target of $11.94 represents a 1.7% premium to PARA’s current price levels. The Street-high price target of $19 suggests an ambitious upside potential of 61.8%.
On the date of publication, Neha Panjwani 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.