The stock offers investors a good opportunity to gain exposure to the fast-growing streaming industry at a cheap price.
On May 6, ViacomCBS reported first-quarter earnings per share of $1.52, beating the Wall Street consensus estimate by 30 cents.
The Asia-Pacific region will be at the forefront of this expected growth because of favorable demographic trends and the billions of dollars that are pouring into IT infrastructure development projects there.
Pluto TV, on the other hand, is a free streaming service owned by ViacomCBS and gives users access to more than 250 live TV channels, including Comedy Central, Nickelodeon, and MTV.
ViacomCBS’ unique hybrid model is likely to help the company gain traction in both developed and emerging markets in the future.
Paramount+ was launched in Latin America, Europe, and Canada as well, and the company is eyeing entry into the Asian market.
Setting ViacomCBS apart from the competition is the wide variety of programs available on its platforms, including original TV shows, movies, and live sports.
On May 10, Barrington Research upgraded ViacomCBS, citing favorable valuation.
In contrast to Netflix, which trades at a lofty price-to-earnings ratio of 48, ViacomCBS stock is valued at a P/E of just 10, which suggests ViacomCBS is significantly undervalued from a relative valuation perspective.