Discovery Communications (DISCA) Outpaces Stock Market Gains: What You Should Know
Discovery Communications (DISCA) closed at $29.30 in the latest trading session, marking a +1.81% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.13%.
Coming into today, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 4.51% in the past month. In that same time, the Consumer Discretionary sector lost 2.21%, while the S&P 500 gained 2.39%.
DISCA will be looking to display strength as it nears its next earnings release. In that report, analysts expect DISCA to post earnings of $0.61 per share. This would mark a year-over-year decline of 20.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.97 billion, up 16.71% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.96 per share and revenue of $12.1 billion, which would represent changes of -38.75% and +13.37%, respectively, from the prior year.
Any recent changes to analyst estimates for DISCA should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.17% higher within the past month. DISCA currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, DISCA is holding a Forward P/E ratio of 14.72. This represents a premium compared to its industry's average Forward P/E of 13.8.
Investors should also note that DISCA has a PEG ratio of 1.38 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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