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Warner Bros. Discovery (WBD) Stock Moves -1.1%: What You Should Know

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In the latest trading session, Warner Bros. Discovery (WBD - Free Report) closed at $11.66, marking a -1.1% move from the previous day. This change was narrower than the S&P 500's daily loss of 2.11%. Meanwhile, the Dow lost 1.54%, and the Nasdaq, a tech-heavy index, lost 0.3%.

Coming into today, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 10.95% in the past month. In that same time, the Consumer Discretionary sector lost 10.19%, while the S&P 500 lost 8.19%.

Warner Bros. Discovery will be looking to display strength as it nears its next earnings release. In that report, analysts expect Warner Bros. Discovery to post earnings of $0.04 per share. This would mark a year-over-year decline of 90.48%. Meanwhile, our latest consensus estimate is calling for revenue of $10.86 billion, up 244.84% from the prior-year quarter.

WBD's full-year Zacks Consensus Estimates are calling for earnings of $1.27 per share and revenue of $35.19 billion. These results would represent year-over-year changes of -21.12% and +188.69%, respectively.

Any recent changes to analyst estimates for Warner Bros. Discovery should also be noted by investors. 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. 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. The Zacks Consensus EPS estimate has moved 14.6% lower within the past month. Warner Bros. Discovery is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Warner Bros. Discovery is holding a Forward P/E ratio of 9.32. This represents a premium compared to its industry's average Forward P/E of 8.35.

It is also worth noting that WBD currently has a PEG ratio of 1.15. 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. The Broadcast Radio and Television industry currently had an average PEG ratio of 0.9 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 221, which puts it in the bottom 13% 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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