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These 2 Media Stocks Have Dropped Close to 50% -- Time to Buy?

By Jose Najarro - Mar 30, 2021 at 10:00AM

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These 2 Media Stocks have dropped close to 50% from their recent all-time highs in a few days. Here I share some reasons why you should add them to your watchlist.

In today's video, I look at two media stocks that have lost closed to 50% of their valuations. The two stocks are Discovery Communications (DISCA) which is down over 45% from its yearly high, and CBS Corporation (PARA 0.83%), which is down over 50% from its yearly high.

Most of the sell-off happened in the last few days, which is rumored to be due to a hedge-fund liquidizing its positions to meet a margin requirement. Regardless of the reason, this sell-off can be a great buying opportunity for investors. 

These are three reasons to watch Discovery and CBS after this sell-off. 

  1. Both these companies are being very aggressive in the subscription-based tv model. 
  2. The sell-off was not due to any changes in the companies fundamentals.
  3. They are profitable with positive cash flow from operations, and their current P/E ratios are looking very attractive when compared to some of its peers.

Click the video below for my full thoughts. 

*Stock Prices used were the midday prices of March 29, 2021. The video was published on March 29, 2021.

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Stocks Mentioned

Paramount Global Stock Quote
Paramount Global
PARA
$32.62 (0.83%) $0.27
AMC Networks Inc. Stock Quote
AMC Networks Inc.
AMCX
$38.30 (-4.11%) $-1.64
Comcast Corporation Stock Quote
Comcast Corporation
CMCSA
$43.97 (0.61%) $0.27
Warner Bros. Discovery, Inc. Stock Quote
Warner Bros. Discovery, Inc.
DISCA

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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