Viacom CBS has fallen far this year, to its current P/E of under 4.5. With a PEG ratio of 0.47, it's looking extremely undervalued. ViacomCBS has an analyst summary score of 9.4/10, meaning analysts are highly bullish on the stock. In terms of technicals, the stock is exiting oversold on the daily. Analysts have lately been increasing their earnings expectations for the company, as you can see on the Zacks "Price & Consensus" chart. ViacomCBS has earnings coming up February 20 and has beaten expectations on 7 of its last 8 reports. There's currently some good hype around Star Trek: Picard, with early IMDB ratings for the show looking really good.
I think this stock may make a strong upward move ahead of earnings. Realistically, $47 is a reasonable price target for early March in the event of an earnings beat. Yesterday I picked up a February 21 $37.50 call that's still very reasonably priced today at $0.30.
I think this stock may make a strong upward move ahead of earnings. Realistically, $47 is a reasonable price target for early March in the event of an earnings beat. Yesterday I picked up a February 21 $37.50 call that's still very reasonably priced today at $0.30.
Comment:
VIAC reported catastrophically bad earnings and guidance this morning. 4Q earnings are about 30% below estimates, revenue 6.5% below estimates, and midpoint of 2020 guidance range is about 13% below estimates. Expect the guidance to be most determinative for how big a move the stock makes today. VIAC is still undervalued even with this guidance, but it may be a while before it recovers.