Warner Bros. Discovery (WBD) closed the most recent trading day at $28.89, moving +2% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.65%. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, added 0.82%.
The operator of cable TV channels such as TLC and Animal Planet's stock has dropped by 3.97% in the past month, falling short of the Consumer Discretionary sector's gain of 2.38% and the S&P 500's gain of 1.15%.
Analysts and investors alike will be keeping a close eye on the performance of Warner Bros. Discovery in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.09, reflecting a 145% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.45 billion, down 5.77% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.68 per share and revenue of $37.28 billion, which would represent changes of +114.72% and 0%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Warner Bros Discovery. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Warner Bros. Discovery holds a Zacks Rank of #2 (Buy).
In terms of valuation, Warner Bros. Discovery is currently trading at a Forward P/E ratio of 108.23. This denotes a premium relative to the industry average Forward P/E of 11.69.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 110, placing it within the top 45% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Warner Bros. Discovery, Inc. (WBD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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