Only a few days ago, investors had begun to use the dreaded word "correction" in their conversations. The S&P 500 was down 10% from its previous high. There were questions about whether the major index would bounce back quickly or continue to fall.

We now know the answer. The S&P 500 just had its best week of 2023 so far. It's no longer in correction territory. And one of the biggest winners last week was a stock in Berkshire Hathaway's portfolio. What is this high-flying Warren Buffett stock -- and is it still a good pick for investors to buy?

From big loser to big winner

Buffett first initiated a position in Paramount Global (PARA -2.22%) in 2022. The legendary investor has become something of a fan of media and entertainment stocks. Paramount brings an impressive lineup to the table, including CBS, Showtime, MTV, Paramount Pictures, and streaming services Paramount+ and PlutoTV.

However, Paramount has been a big loser for Buffett so far. Until last week, shares of the media and entertainment company were down nearly 60% year to date following a dismal performance last year.

But the company just might have ended that slide. Paramount announced its third-quarter results on Nov. 2, 2023. Its shares soared on better-than-expected earnings, making Paramount one of the biggest winners in the S&P 500 last week.

Paramount reported Q3 revenue of more than $7.13 billion, a little higher than the consensus Wall Street estimate of $7.12 billion. However, its bottom line really shined. The company posted adjusted earnings per share of $0.30, trouncing the average analysts' earnings estimate of $0.39 per share.

What investors especially liked about Paramount's Q3 update

Savvy investors focus more on the future than the past and the present. And they especially liked what Paramount executives said in the Q3 update about the company's near-term prospects.

CEO Bob Bakish noted that direct-to-consumer (DTC) losses narrowed significantly in the third quarter. He said that these losses will be lower in 2023 than in 2022. Most importantly, Bakish stated that Paramount "remain[s] on the path to achieving significant total company earnings growth in 2024."

The improving DTC numbers should help Paramount increase its profitability going forward. CFO Naveen Chopra also mentioned a couple of tailwinds on the way next year for its linear TV business. CBS will air the Super Bowl on Feb. 11, 2024. The game will also be available on Paramount+. Paramount's networks should benefit from increased political advertising with next year's elections as well.

Bakish also reeled off a list of new movies on the way from Paramount's film studios. They include a Gladiator sequel and new additions to the Sonic and Transformers franchises. He emphasized that the company will continue to focus on franchises and delivering value from its filmed entertainment segment.

Is this (now) high-flying Buffett stock a buy?

Why might investors want to consider buying Paramount Global? Valuation ranks at the top of the list. The stock trades at only 10.3 times expected earnings. Its price-to-earnings-to-growth (PEG) ratio is a low 0.73.

However, Paramount isn't nearly as attractive to income investors as it used to be. The company's dividend cut earlier this year reduced its yield to a less-than-inspiring 1.45%.

And while 2024 could be a better year for its linear TV business, the headwinds won't disappear. This is especially concerning since those businesses generated 64% of Paramount's total revenue in Q3.

Maybe Paramount Global will keep up its momentum sparked last week and make a lot of money for Buffett and other investors. My view, though, is that despite Paramount's improvement, there are better stocks to buy.