6 Undervalued Entertainment Stocks To Buy Right Now

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1. Paramount Global (NASDAQ:PARA)

Paramount Global is an entertainment and mass media company that operates through filmed entertainment, TV media, and direct-to-consumer segments. Its TV media segment manages CBS stations, domestic premium & basic cable networks, CBS television network, and international extensions. The company’s stock is down 19% in the last year and currently trades at a price-to-book value of just 0.44.

Paramount Global continues to be in dispute with Nielsen over high fees since the expiry of their previous contract in October last year. It is likely to partner with Nielsen competitors going forward, which will help the company save fees. This is a big shift for the industry as alternatives like VideoAmp aren’t designed to operate at the same scale. However, the new scenario will likely result in more innovation and Paramount could find itself well-positioned for any future technology that might be adopted in the future.

Moreover, the company continues to generate healthy profits from its lucrative contracts including the NFL and March Madness. The profits from its sports segment and the cost-savings post Nielsen contract expiry will help improve the bottom line going forward, helping the company command a better valuation.

Paramount Global is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held PARA at the end of the third quarter which was 39 in the previous quarter. While we acknowledge the potential of PARA as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as PARA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article was originally published at Insider Monkey.

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