November 16, 2023
Top 10 Stock Paramount Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Paramount Strong Buy

360 METRICS	November 16, 2023
VALUE
VALUE	82
GROWTH
GROWTH	57
SAFETY
SAFETY	86
SENTIMENT
SENTIMENT	30
360° VIEW
360° VIEW	78

ANALYSIS: With an Obermatt 360° View of 78 (better than 78% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock Paramount are very positive. The 360° View is based on consolidating four consolidated indicators, with three out of four indicators above average for Paramount. The consolidated Value Rank has an attractive rank of 82, which means that the share price of Paramount is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 82% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 57, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth, as well as stock returns. The company is also safely financed with a Safety Rank of 86. But the professional market sentiment is below average compared with other stock investment alternatives with a Sentiment Rank of only 30. Professional investors are more confident in 70% other stocks. ...read more

RECOMMENDATION: With a consolidated 360° View of 78, Paramount is better positioned than 78% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 82), above-average growth (Growth Rank of 57), and safe financing practices (Safety Rank of 86), it is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely, unless information not publicly available. Only the professional market sentiment is on the riskier side (Sentiment Rank of 30), but that could also mean an overreaction to negative news in the past. Good value is sometimes an indication that the company's future is challenging. If they have been enjoying above average growth and are still a good value, this may not continue. We recommend evaluating whether the future of Paramount is as challenging as the low price of the stock despite good growth and safe financing practices suggest. Since the professional community is pessimistic, you may want to reflect these negative opinions in light of what you find reasonable to expect for the future. If you believe this pessimistic view is transitory, you have a solid investment case based on current financial factors. ...read more

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Sentiment Strategy: Professional Market Sentiment for Paramount only reserved

SENTIMENT METRICS	November 16, 2023
ANALYST OPINION
ANALYST OPINION	9
OPINIONS CHANGE
OPINIONS CHANGE	82
PRO HOLDINGS
PRO HOLDINGS	14
MARKET PULSE
MARKET PULSE	53
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	30

ANALYSIS: With an Obermatt Sentiment Rank of 30 (better than 30% compared with alternatives), overall professional sentiment and engagement for the stock Paramount is below industry average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and above average for Paramount. Analyst Opinions are at a rank of 9 (worse than 91% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 82 which means that stock research experts are changing their opinions for the better. In other words, they are getting more optimistic of stock investments in Paramount. Market Pulse is also positive with a rank of 53, which means that the current professional news and professional social networks are positive in their discussions about this company (more positive news than for 53% of competitors). Only professional investors tend to be absent with a Professional Investors rank of 14, which means that professional investors hold less stock in this company than in 86% of alternative investment opportunities. Pros tend to invest in other companies. But that could also be due to the size of the company. Professional investors tend to invest in XL and XXL companies. If the company is smaller than that, that fact alone may explain why there are fewer pros present. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 30 (less encouraging than 70% compared with investment alternatives), Paramount has a reputation among professional investors that is below that of its competitors. Since analysts are getting more optimistic and the professional communication channels are positive, it may be an indication of a company that has the difficult times behind it or the stocks’ value is improving. For medium to smaller companies, the positive sentiment indicators outshine the negative. ...read more

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Value Strategy: Paramount Stock Price Value at the top

VALUE METRICS	November 16, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	69
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	57
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	83
DIVIDEND YIELD
DIVIDEND YIELD	59
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	82

ANALYSIS: With an Obermatt Value Rank of 82 (better than 82% compared with alternatives) for 2023, Paramount shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Paramount. Price-to-Sales is 69 which means that the stock price compared with what market professionals expect for future sales is lower than for 69% of comparable companies, indicating a good value for Paramount's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 57% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 83. Compared with other companies in the same industry, dividend yields of Paramount are expected to be higher than for 59% of all competitors (a Dividend Yield rank of 59). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 82, is a buy recommendation based on Paramount's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Paramount based on its detailed value metrics.

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Growth Strategy: Paramount Growth Momentum good

GROWTH METRICS	November 16, 2023
REVENUE GROWTH
REVENUE GROWTH	59
PROFIT GROWTH
PROFIT GROWTH	32
CAPITAL GROWTH
CAPITAL GROWTH	70
STOCK RETURNS
STOCK RETURNS	25
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	57

ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), Paramount shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Paramount. Sales Growth has a rank of 59 which means that currently, professionals expect the company to grow more than 59% of its competitors. Capital Growth is also above 32% of competitors with a rank of 70. But Profit Growth only has a rank of 32, which means that currently professionals expect the company to grow its profits less than 68% of its competitors. And Stock Returns have also been below average with a rank of only 25. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, is a buy recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. ...read more

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Safety Strategy: Paramount Debt Financing Safety very solid

SAFETY METRICS	November 16, 2023
LEVERAGE
LEVERAGE	74
REFINANCING
REFINANCING	83
LIQUIDITY
LIQUIDITY	51
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	86

ANALYSIS: With an Obermatt Safety Rank of 86 (better than 86% compared with alternatives) for 2023, the company Paramount has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Paramount is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Paramount. Leverage is at 74, meaning the company has a below-average debt-to-equity ratio. It has less debt than 74% of its competitors. Refinancing is at a rank of 83, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 83% of its competitors. Finally, Liquidity is also good at a rank of 51, which means that the company generates more profit to service its debt than 51% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 86 (better than 86% compared with alternatives), Paramount has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. ...read more

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Combined financial peformance: Paramount Top Financial Performance

COMBINED PERFORMANCE	November 16, 2023
VALUE
VALUE	82
GROWTH
GROWTH	57
SAFETY
SAFETY	51
COMBINED
COMBINED	96

ANALYSIS: With an Obermatt Combined Rank of 96 (better than 96% compared with investment alternatives), Paramount (Broadcasting, USA) shares have much better financial characteristics than comparable stocks. Shares of Paramount are a good value (attractively priced) with a consolidated Value Rank of 82 (better than 82% of alternatives), show above-average growth (Growth Rank of 57), and are safely financed (Safety Rank of 86), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 96, is a strong buy recommendation based on Paramount's financial characteristics. As the company Paramount's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 82), above-average growth (Obermatt Growth Rank of 57), and indicate that the company is safely financed (Obermatt Safety Rank of 86), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Paramount. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more

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