Warner Bros. Discovery (WBD) Gains As Market Dips: What You Should Know
Warner Bros. Discovery (WBD) closed the most recent trading day at $13.42, moving +1.9% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.88%. Meanwhile, the Dow lost 0.82%, and the Nasdaq, a tech-heavy index, added 0.08%.
Prior to today's trading, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 25.43% over the past month. This has lagged the Consumer Discretionary sector's loss of 10.6% and the S&P 500's loss of 8.06% in that time.
Wall Street will be looking for positivity from Warner Bros. Discovery as it approaches its next earnings report date. The company is expected to report EPS of $0.01, down 98.8% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.65 billion, up 280.56% from the year-ago period.
WBD's full-year Zacks Consensus Estimates are calling for earnings of $1.51 per share and revenue of $41.84 billion. These results would represent year-over-year changes of -6.21% and +243.17%, respectively.
Investors should also note any recent changes to analyst estimates for Warner Bros. Discovery. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Warner Bros. Discovery is currently a Zacks Rank #3 (Hold).
Investors should also note Warner Bros. Discovery's current valuation metrics, including its Forward P/E ratio of 8.73. Its industry sports an average Forward P/E of 7.21, so we one might conclude that Warner Bros. Discovery is trading at a premium comparatively.
We can also see that WBD currently has a PEG ratio of 0.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Broadcast Radio and Television was holding an average PEG ratio of 0.92 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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