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Warner Bros. Discovery (WBD) Gains As Market Dips: What You Should Know
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In the latest trading session, Warner Bros. Discovery (WBD - Free Report) closed at $14.18, marking a +1.65% move from the previous day. This change outpaced the S&P 500's 0.45% loss on the day. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 0.21% in the past month. In that same time, the Consumer Discretionary sector lost 5.52%, while the S&P 500 lost 1.89%.
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. Meanwhile, our latest consensus estimate is calling for revenue of $11.65 billion, up 280.56% from the prior-year quarter.
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 should also note any recent changes to analyst estimates for Warner Bros. Discovery. These recent revisions tend to reflect the evolving nature of short-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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Warner Bros. Discovery is currently sporting a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Warner Bros. Discovery has a Forward P/E ratio of 9.25 right now. For comparison, its industry has an average Forward P/E of 6.75, which means Warner Bros. Discovery is trading at a premium to the group.
We can also see that WBD currently has a PEG ratio of 0.99. 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 0.9 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 88, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow WBD in the coming trading sessions, be sure to utilize Zacks.com.
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Warner Bros. Discovery (WBD) Gains As Market Dips: What You Should Know
In the latest trading session, Warner Bros. Discovery (WBD - Free Report) closed at $14.18, marking a +1.65% move from the previous day. This change outpaced the S&P 500's 0.45% loss on the day. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 0.21% in the past month. In that same time, the Consumer Discretionary sector lost 5.52%, while the S&P 500 lost 1.89%.
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. Meanwhile, our latest consensus estimate is calling for revenue of $11.65 billion, up 280.56% from the prior-year quarter.
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 should also note any recent changes to analyst estimates for Warner Bros. Discovery. These recent revisions tend to reflect the evolving nature of short-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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Warner Bros. Discovery is currently sporting a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Warner Bros. Discovery has a Forward P/E ratio of 9.25 right now. For comparison, its industry has an average Forward P/E of 6.75, which means Warner Bros. Discovery is trading at a premium to the group.
We can also see that WBD currently has a PEG ratio of 0.99. 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 0.9 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 88, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow WBD in the coming trading sessions, be sure to utilize Zacks.com.