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Warner Bros. Discovery (WBD) Gains As Market Dips: What You Should Know

·3 min read

Warner Bros. Discovery (WBD) closed at $13.21 in the latest trading session, marking a +0.38% move from the prior day. This move outpaced the S&P 500's daily loss of 1.13%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.18%.

Prior to today's trading, shares of the operator of cable TV channels such as TLC and Animal Planet had gained 3.54% over the past month. This has outpaced the Consumer Discretionary sector's loss of 7.02% and the S&P 500's loss of 7.59% in that time.

Investors will be hoping for strength from Warner Bros. Discovery as it approaches its next earnings release. On that day, Warner Bros. Discovery is projected to report earnings of $0.16 per share, which would represent a year-over-year decline of 61.9%. Meanwhile, our latest consensus estimate is calling for revenue of $10.86 billion, up 244.84% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.28 per share and revenue of $35.19 billion, which would represent changes of -20.5% and +188.69%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Warner Bros. Discovery. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 12.43% lower. Warner Bros. Discovery is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Warner Bros. Discovery is holding a Forward P/E ratio of 10.25. This represents a premium compared to its industry's average Forward P/E of 9.22.

We can also see that WBD currently has a PEG ratio of 1.26. 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. WBD's industry had an average PEG ratio of 1 as of yesterday's close.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 17% 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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