Momentum Stock Watch: Viacom Inc. (VIAB)

Company Profile:

Viacom Inc. operates media brands that create entertainment content worldwide. It operates through two segments, Media Networks and Filmed Entertainment. The Media Networks segment offers entertainment content, services, and related branded products for consumers through approximately 314 locally programmed and operated television channels, including Nickelodeon, MTV, BET, Comedy Central, Paramount Network, Nick Jr., VH1, TV Land, CMT, Logo, Channel 5, Milkshake!, Telefe, Colors, Paramount Channel, TeenNick, Nicktoons, Nick Music, MTV2, MTV Classic, MTV Live, BET Her, BET Gospel, and BET Hip Hop, as well as through online, mobile, and apps. The Filmed Entertainment segment produces, finances, acquires, and distributes motion pictures, television programming, and other entertainment content under the Paramount Pictures, Paramount Players, Paramount Animation, Paramount Television, Nickelodeon Movies, MTV Films, and BET Films brands. It exhibits motion pictures theatrically through home entertainment, licensing to television and digital platforms, and ancillary activities, as well as DVDs and Blu-ray discs, TVOD, pay television, SVOD, cable, and free television; and airlines and hotels. The company is headquartered in New York, New York.

Recent News:

VIAB reported second-quarter fiscal 2019 adjusted earnings of 95 cents per share. Revenues came $2.96 billion. General and administrative (SG&A) expenses decreased 3.6% to $743 million. Adjusted operating income decreased 1% at cc from the year-ago quarter to $637 million.

Its Board of Directors has declared a quarterly cash dividend of $0.20 per share on both its Class A and Class B common stock. The dividend will be payable on July 1, 2019 to stockholders of record at the close of business on June 17, 2019.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

VIAB’s strengths can be seen in its strong profitability and better efficiency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator and the RSI(14) stands at 56.29 with positive bias. We rate Viacom Inc. (VIAB) a STRONG BUY.