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Warner Bros. Discovery (WBD) Stock Moves -0.56%: What You Should Know

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Warner Bros. Discovery (WBD - Free Report) closed at $12.43 in the latest trading session, marking a -0.56% move from the prior day. This change was narrower than the S&P 500's 2.37% loss on the day. Elsewhere, the Dow lost 1.35%, while the tech-heavy Nasdaq lost 0.21%.

Heading into today, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 5.09% over the past month, outpacing the Consumer Discretionary sector's loss of 9.74% and the S&P 500's loss of 6.51% in that time.

Investors will be hoping for strength from Warner Bros. Discovery as it approaches its next earnings release. In that report, analysts expect Warner Bros. Discovery to post earnings of $0.08 per share. This would mark a year-over-year decline of 80.95%. Meanwhile, our latest consensus estimate is calling for revenue of $10.62 billion, up 237.21% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.05 per share and revenue of $34.52 billion, which would represent changes of -34.78% and +183.19%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Warner Bros. Discovery. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, 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. Within the past 30 days, our consensus EPS projection has moved 22.98% lower. Warner Bros. Discovery currently has a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Warner Bros. Discovery currently has a Forward P/E ratio of 11.93. For comparison, its industry has an average Forward P/E of 8.5, which means Warner Bros. Discovery is trading at a premium to the group.

It is also worth noting that WBD currently has a PEG ratio of 1.47. 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. WBD's industry had an average PEG ratio of 0.93 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 146, which puts it in the bottom 43% 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.

To follow WBD in the coming trading sessions, be sure to utilize Zacks.com.


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