U.S. markets close in 4 hours 7 minutes
  • S&P 500

    +81.00 (+1.96%)
  • Dow 30

    +509.95 (+1.56%)
  • Nasdaq

    +329.11 (+2.63%)
  • Russell 2000

    +48.27 (+2.52%)
  • Crude Oil

    -0.27 (-0.30%)
  • Gold

    +1.30 (+0.07%)
  • Silver

    +0.24 (+1.16%)

    +0.0120 (+1.18%)
  • 10-Yr Bond

    -0.0340 (-1.22%)

    +0.0172 (+1.42%)

    -2.5970 (-1.92%)

    +887.61 (+3.84%)
  • CMC Crypto 200

    +33.84 (+6.37%)
  • FTSE 100

    +18.96 (+0.25%)
  • Nikkei 225

    -180.63 (-0.65%)

Warner Bros. Discovery (WBD) Outpaces Stock Market Gains: What You Should Know

·3 min read

In the latest trading session, Warner Bros. Discovery (WBD) closed at $14.44, marking a +1.33% move from the previous day. This change outpaced the S&P 500's 0.59% gain on the day. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Prior to today's trading, shares of the operator of cable TV channels such as TLC and Animal Planet had gained 1.5% over the past month. This has lagged the Consumer Discretionary sector's gain of 6.07% and the S&P 500's gain of 7.25% in that time.

Wall Street will be looking for positivity from Warner Bros. Discovery as it approaches its next earnings report date. In that report, analysts expect Warner Bros. Discovery to post earnings of $0.03 per share. This would mark a year-over-year decline of 96.39%. Our most recent consensus estimate is calling for quarterly revenue of $11.6 billion, up 278.67% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.52 per share and revenue of $41.63 billion. These totals would mark changes of -5.59% and +241.47%, respectively, from last 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.53% higher within the past month. Warner Bros. Discovery is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Warner Bros. Discovery currently has a Forward P/E ratio of 9.4. This represents a premium compared to its industry's average Forward P/E of 7.66.

Also, we should mention that WBD has a PEG ratio of 1.16. 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 1.1 as of yesterday's close.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 36% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Warner Bros. Discovery, Inc. (WBD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research