In the latest close session, Warner Bros. Discovery (WBD) was up +2.17% at $27.80. This change outpaced the S&P 500's 0.33% loss on the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 0.59%.
Prior to today's trading, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 4.19% lagged the Consumer Discretionary sector's loss of 3.6% and the S&P 500's loss of 0%.
Investors will be eagerly watching for the performance of Warner Bros. Discovery in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.08, signifying a 140.00% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.46 billion, showing a 5.7% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.64 per share and revenue of $37.29 billion. These totals would mark changes of +113.85% and -5.17%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Warner Bros Discovery. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 12.1% downward. Right now, Warner Bros. Discovery possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Warner Bros. Discovery is currently being traded at a Forward P/E ratio of 118.3. Its industry sports an average Forward P/E of 10.73, so one might conclude that Warner Bros. Discovery is trading at a premium comparatively.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 71, this industry ranks in the top 29% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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