Warner Bros. Discovery (WBD) closed the most recent trading day at $14.04, moving -1.27% from the previous trading session. This move lagged the S&P 500's daily gain of 2.45%. Elsewhere, the Dow gained 2.15%, while the tech-heavy Nasdaq added 0.18%.
Prior to today's trading, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 22.25% over the past month. This has lagged the Consumer Discretionary sector's loss of 7.23% and the S&P 500's loss of 5.71% 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.51 per share and revenue of $41.84 billion, which would represent changes of -6.21% and +243.17%, 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 10.33% lower within the past month. Warner Bros. Discovery currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Warner Bros. Discovery is holding a Forward P/E ratio of 9.43. Its industry sports an average Forward P/E of 7.03, 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 0.94. 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 0.93 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% 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.