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Should Value Investors Buy Warner Bros. Discovery (WBD) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Warner Bros. Discovery (WBD - Free Report) . WBD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.25 right now. For comparison, its industry sports an average P/E of 21.13. Over the past year, WBD's Forward P/E has been as high as 15.28 and as low as 5.89, with a median of 9.04.
WBD is also sporting a PEG ratio of 1.41. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WBD's PEG compares to its industry's average PEG of 2.44. Over the last 12 months, WBD's PEG has been as high as 1.51 and as low as 0.67, with a median of 1.08.
Value investors will likely look at more than just these metrics, but the above data helps show that Warner Bros. Discovery is likely undervalued currently. And when considering the strength of its earnings outlook, WBD sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Warner Bros. Discovery (WBD) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Warner Bros. Discovery (WBD - Free Report) . WBD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.25 right now. For comparison, its industry sports an average P/E of 21.13. Over the past year, WBD's Forward P/E has been as high as 15.28 and as low as 5.89, with a median of 9.04.
WBD is also sporting a PEG ratio of 1.41. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WBD's PEG compares to its industry's average PEG of 2.44. Over the last 12 months, WBD's PEG has been as high as 1.51 and as low as 0.67, with a median of 1.08.
Value investors will likely look at more than just these metrics, but the above data helps show that Warner Bros. Discovery is likely undervalued currently. And when considering the strength of its earnings outlook, WBD sticks out at as one of the market's strongest value stocks.