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Warner Bros. Discovery (WBD) Outpaces Stock Market Gains: What You Should Know
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Warner Bros. Discovery (WBD - Free Report) closed the most recent trading day at $15.24, moving +1.46% from the previous trading session. This change outpaced the S&P 500's 0.76% gain on the day. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq lost 0.98%.
Prior to today's trading, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 2.21% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 6.48% and the S&P 500's loss of 3.91% in that time.
Investors will be hoping for strength from Warner Bros. Discovery as it approaches its next earnings release. The company is expected to report EPS of $0.17, down 75.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.78 billion, up 241.4% from the year-ago period.
WBD's full-year Zacks Consensus Estimates are calling for earnings of $1.11 per share and revenue of $43.94 billion. These results would represent year-over-year changes of +141.3% and +29.92%, respectively.
It is also important to note the recent changes to analyst estimates for Warner Bros. Discovery. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 11.9% higher. Warner Bros. Discovery is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Warner Bros. Discovery's current valuation metrics, including its Forward P/E ratio of 13.59. This valuation marks a discount compared to its industry's average Forward P/E of 14.43.
We can also see that WBD currently has a PEG ratio of 1.05. 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 1.48 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 16% 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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Warner Bros. Discovery (WBD) Outpaces Stock Market Gains: What You Should Know
Warner Bros. Discovery (WBD - Free Report) closed the most recent trading day at $15.24, moving +1.46% from the previous trading session. This change outpaced the S&P 500's 0.76% gain on the day. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq lost 0.98%.
Prior to today's trading, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 2.21% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 6.48% and the S&P 500's loss of 3.91% in that time.
Investors will be hoping for strength from Warner Bros. Discovery as it approaches its next earnings release. The company is expected to report EPS of $0.17, down 75.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.78 billion, up 241.4% from the year-ago period.
WBD's full-year Zacks Consensus Estimates are calling for earnings of $1.11 per share and revenue of $43.94 billion. These results would represent year-over-year changes of +141.3% and +29.92%, respectively.
It is also important to note the recent changes to analyst estimates for Warner Bros. Discovery. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 11.9% higher. Warner Bros. Discovery is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Warner Bros. Discovery's current valuation metrics, including its Forward P/E ratio of 13.59. This valuation marks a discount compared to its industry's average Forward P/E of 14.43.
We can also see that WBD currently has a PEG ratio of 1.05. 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 1.48 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 16% 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.