CBS is "very cheap"

Previously in Transcendental Generalization, I discussed reasons to buy stock in CBS.

A recent article from Yahoo! Finance validated my conclusions:

But being touted by some as being one of the best values in the downtrodden media sector. Shares of CBS have been relatively flat since the split took place and trade at about 14 times 2006 earnings estimates, a significant discount to Viacom and other media rivals like Time Warner, Walt Disney and News Corp. "The stock is very cheap," said Philp Remek, an analyst with Guzman & Co. "Investors have priced in little growth. Expectations are very low." The company will report its fourth quarter 2005 results on Thursday, but most analysts and investors are more eager to hear about what CBS is predicting for 2006 than how it did in its last quarter before the split. Analysts are currently predicting revenue growth of 4 percent for 2006 and an earnings increase of 10 percent.

Tags: Finance

Created at: 21 February 2006 12:02 AM