This Media Stock is Still Undervalued
The COVID-19 pandemic was a historic disruptor for many sectors. However, few were impacted as
severely as entertainment. Film and television production schedules were thrown off course and in-
home entertainment became more popular than ever. This led to an explosion in views and
subscriptions for streaming giants like Netflix and its growing list of competitors.
Corus Entertainment (TSX:CJR.B) is a Toronto-based media and content company that has struggled, at
times, to keep up with this rapidly changing sector. Its shares have plunged 54% in 2022 as of close on
October 26. The stock is down 60% compared to the same period in 2021.
Fortunately, Corus management has pushed to reinvigorate its business by dipping its toes into the
streaming space. On December 1, 2022, the company plans to launch Pluto TV. This FAST (free ad-
supporting streaming television) service will give viewer access to Corus’ substantial portfolio of
content. It recently launched TELETOON+, a new premium kids and family streaming service.
These steps are encouraging, but Corus is still wading through a rough patch. Total revenue slipped 6%
from the previous year to $339 million in the fourth quarter of fiscal 2022. However, revenue was still up
4% for the full year to $1.59 billion.
This media stock is currently trading in favourable value territory compared to its industry peers. Shares
of Corus last had an RSI of 32, which puts it just outside of technically oversold levels. It offers a
quarterly dividend of $0.06 per share. That represents an enormous 11% yield. I’m looking to snatch up
this discounted media stock in late October.
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