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Warner Bros. Discovery (WBD) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Warner Bros. Discovery (WBD - Free Report) closed at $12.71, marking a -1.85% move from the previous day. This change lagged the S&P 500's daily gain of 0.34%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.02%.
Prior to today's trading, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 5.41% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 9.64% and the S&P 500's loss of 7.95% 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%. Our most recent consensus estimate is calling for quarterly revenue of $10.86 billion, up 244.84% from the year-ago period.
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.
It is also important to note the 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.
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 has moved 12.43% lower. Warner Bros. Discovery is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Warner Bros. Discovery currently has a Forward P/E ratio of 10.09. This valuation marks a premium compared to its industry's average Forward P/E of 9.18.
Investors should also note that WBD has a PEG ratio of 1.24 right now. 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 0.99 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 212, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Warner Bros. Discovery (WBD) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Warner Bros. Discovery (WBD - Free Report) closed at $12.71, marking a -1.85% move from the previous day. This change lagged the S&P 500's daily gain of 0.34%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.02%.
Prior to today's trading, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 5.41% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 9.64% and the S&P 500's loss of 7.95% 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%. Our most recent consensus estimate is calling for quarterly revenue of $10.86 billion, up 244.84% from the year-ago period.
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.
It is also important to note the 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.
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 has moved 12.43% lower. Warner Bros. Discovery is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Warner Bros. Discovery currently has a Forward P/E ratio of 10.09. This valuation marks a premium compared to its industry's average Forward P/E of 9.18.
Investors should also note that WBD has a PEG ratio of 1.24 right now. 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 0.99 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 212, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.