The power of streaming makes VIAC Stock a star

It is not uncommon to hear traders complain that there are no longer any good deals on Wall Street. However, skeptics should really consider the media conglomerate ViacomCBS (NASDAQ:VIAC), because the data will show that VIAC stock is certainly not overpriced.

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If anything, it’s a stock that deserves an upward reassessment. From a valuation standpoint, nonconformists should definitely have ViacomCBS on their watch lists.

Certainly, there was some trepidation during the preparation for the recent publication of the results of ViacomCBS. Could the company deliver when there is strong competition from streaming companies?

In fact, ViacomCBS has beaten streaming newbies at their own game with tax numbers that have exceeded expectations. Don’t dismiss this massive media conglomerate because revenues continue to rise and the number of subscribers is growing rapidly.

VIAC Inventory Overview

Before taking a position in VIAC stock, it is important to remember what triggered its sell off at the start of the year. In March, a year after the shock of the Covid-19 pandemic, ViacomCBS was recovering well. Suddenly, Capital Archegos unwound its massively leveraged position in ViacomCBS.

Looking back, it is obvious that this event was not ViacomCBS’s fault. Nonetheless, the market punished VIAC stocks, dropping them from $ 100 to $ 40 in a matter of days.

It’s as if the market has completely forgotten that ViacomCBS is a thriving business with a well-established line of entertainment brands. More than six months after the explosion of Archegos, it seems investors still have not discovered the true value of ViacomCBS.

Now VIAC stock is trading at the low price of $ 35 and is changing. In addition, the 12 month price / earnings (P / E) ratio of ViacomCBS is only 7.21x.

Not only that, but the company offers an annual dividend yield at term of 2.73%. Therefore, there is something here to appeal to value investors as well as income seekers.

The real star of the show

You might recognize ViacomCBS as the owner of Paramount Plus. Alternatively, you can get to know the company through their CBS TV shows, or their CBS shows. National football league (NFL) or its contents as A Quiet Place, Part II and Paw Patrol: The Movie.

Still, ViacomCBS isn’t limited to celebrities and mainstream television. As the data shows, the company is also moving into a niche streaming competitor. This is important because today’s audiences look to streaming content for entertainment.

Fortunately, ViacomCBS is thriving in this area. During the third quarter of 2021, the company added 4.3 million streaming subscribers globally. Obviously, the growth of the streaming segment of ViacomCBS is now the star of the show.

With the addition of the third quarter, the total number of ViacomCBS global streaming subscribers stands at nearly 47 million. So, if more and more viewers choose to “cut the cord” on traditional cable and pay-TV services, investors have nothing to fear – ViacomCBS can adapt and evolve.

The streaming strategy works

It’s also worth noting that ViacomCBS’s streaming revenue grew 62% year-on-year to around $ 1.1 billion. In other words, the business is able to convert the growth of its subscribers into improved revenue.

At the same time, let’s not ignore ViacomCBS TV entertainment revenue in the third quarter. It totaled $ 2.92 billion, marking a 24.2% improvement. So, skeptics cannot claim that ViacomCBS is relying too heavily on its streaming segment.

Now let’s take a look at the big picture. For the third quarter, ViacomCBS revenue was $ 6.61 billion. That’s an increase of 13.2%, and it’s also better than the FactSet consensus estimate of $ 6.56 billion.

With this data no doubt in mind, ViacomCBS CEO Bob Bakish took a moment to brag about his company’s progress. “Our strategy is clearly working and we will continue to use the power of global content, distribution and market expansion to increase scale,” Bakish explained.

Take-out meals on VIAC Stock

VIAC shares still appear to be undervalued, even more than half a year after the Archegos Capital incident. This represents an opportunity for value investors.

The company’s revenue data should impress even the most die-hard reviewers. In addition, ViacomCBS continues to generate powerful revenue streams from its TV entertainment and streaming content segments.

As of the publication date, neither Louis Navellier nor the InvestorPlace research staff member primarily responsible for this article held (directly or indirectly) positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publication guidelines.

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