Warner Bros. Discovery (WBD) closed at $28.24 in the latest trading session, marking a -1.19% move from the prior day. This change lagged the S&P 500's 0.5% gain on the day. Meanwhile, the Dow experienced a rise of 0.64%, and the technology-dominated Nasdaq saw an increase of 0.43%.
Shares of the operator of cable TV channels such as TLC and Animal Planet have depreciated by 0.76% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 2.73%, and lagging the S&P 500's gain of 0.18%.
The upcoming earnings release of Warner Bros. Discovery will be of great interest to investors. In that report, analysts expect Warner Bros. Discovery to post earnings of $0.09 per share. This would mark year-over-year growth of 145%. At the same time, our most recent consensus estimate is projecting a revenue of $9.45 billion, reflecting a 5.77% fall from the equivalent quarter last year.
WBD's full-year Zacks Consensus Estimates are calling for earnings of $0.68 per share and revenue of $37.28 billion. These results would represent year-over-year changes of +114.72% and 0%, respectively.
Any recent changes to analyst estimates for Warner Bros. Discovery should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Warner Bros. Discovery is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Warner Bros. Discovery is at present trading with a Forward P/E ratio of 109.22. This valuation marks a premium compared to its industry average Forward P/E of 12.05.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 67, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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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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