A Value Play in the Streaming Space

Typically, investors love companies with a strong brand, a loyal following, a recurring revenue model, and improving key metrics.

  • Special: This Company’s Share Price has Increased 1650% Since 2016
  • In the streaming space, a number of companies have created tremendous value for shareholders over the years by better monetizing their intellectual property. Many of these companies trade at a high valuation, but one firm looks like a relative value not only in the sector, but in today’s market overall.

    That company is ViacomCBS (VIAC). The merger between the two companies was completed just before the start of the pandemic. And while shares are higher since last year’s selloff, shares remain well off the highs set earlier this year, in spite of improved returns on streaming services this earnings season.

    • This Company’s Share Price has Increased 1650% Since 2016.

      Traditional pharmacies can be a headache. That’s why NowRx has rebuilt the retail pharmacy experience to be more convenient, personalized, and hassle-free for customers – and their potential is growing quickly.

      This year, the company is on pace to surpass $22M in revenue and with their newest telehealth product growing 73% MoM, the time to invest has never been better!

      Did we mention that retail pharmacy is a $480B industry? You’re going to want a piece of that.

      Check out NowRx for yourself and explore the investment opportunity today.

    Shares trade at 9 times forward earnings, and earnings are up 115 percent over the past year. ViacomCBS has a somewhat low profit margin and some analysts are concerned over the debt load, so any improvement there could lead to a move higher in shares.

    Action to take: Investors may like shares here. The stock yields about 2.6 percent at current levels. While the dividend has been flat for over a year, future increases could occur in the future, given the low payout ratio of just 19 percent.

  • Special: Your 15 Minute Workday… (Make Extra Cash from Home)
  • Shares have been sliding down somewhat over the past month, and are near oversold levels on a technical basis. Traders may want to bet on a move higher, but should wait for that move to start first. A trade like the March $45 calls, last going for about $0.88, could move higher once that rally kicks off.

     

    Disclosure: The author of this article has a position in the company mentioned here, but does not intend to trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.