Warner Bros. Discovery (WBD) ended the recent trading session at $27.19, demonstrating a -1.2% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, lost 1.43%.
Shares of the operator of cable TV channels such as TLC and Animal Planet witnessed a loss of 3.54% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 3.44%, and the S&P 500's gain of 1.8%.
Market participants will be closely following the financial results of Warner Bros. Discovery in its upcoming release. On that day, Warner Bros. Discovery is projected to report earnings of $0.08 per share, which would represent year-over-year growth of 140%. At the same time, our most recent consensus estimate is projecting a revenue of $9.46 billion, reflecting a 5.7% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.64 per share and a revenue of $37.29 billion, signifying shifts of +113.85% and 0%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Warner Bros Discovery. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, there's been a 12.1% fall in the Zacks Consensus EPS estimate. Warner Bros. Discovery presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Warner Bros. Discovery currently has a Forward P/E ratio of 119.65. This expresses a premium compared to the average Forward P/E of 13.35 of its industry.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 26% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Warner Bros. Discovery, Inc. (WBD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
