CBS Corporation (CBS) Stock Depends on Its No. 1 Network’s Success

Still, new media threaten CBS’s areas of traditional dominance. In news, for instance, the perception among younger viewers is that big-network news is slow and obsolete, with more people getting immediate news through social media and online sources. Alternatives to regular weekly viewing have also forced CBS to react in order to protect its traditional advertising revenue, while satellite and streaming radio has posed new competition for its radio network.

Where the growth is
Despite all these challenges, CBS Corporation (NYSE:CBS) has thus far managed to produce strong earnings growth. With earnings expected to rise almost 20% this year, and another 12% in 2014, the company is clearly making the most of its opportunities, and taking steps to control costs and other threats to its profitability.

CBS EPS Diluted TTM data by YCharts.

As long as the company can successfully defend its traditional turf and find new growth opportunities, CBS stock has further room to run higher. With CBS’s content potentially being its most valuable asset, investors should continue to see the positive impact of the network’s efforts on CBS stock well into the future.

The article CBS Stock Depends on Its No. 1 Network’s Success originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Amazon.com, Netflix, Inc. (NASDAQ:NFLX), and The Walt Disney Company (NYSE:DIS). The Motley Fool owns shares of Amazon.com, Netflix, and Walt Disney.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.