In the latest close session, Warner Bros. Discovery (WBD) was up +2.73% at $28.76. The stock exceeded the S&P 500, which registered a gain of 0.1% for the day. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.14%.
The operator of cable TV channels such as TLC and Animal Planet's shares have seen a decrease of 2.06% over the last month, surpassing the Consumer Discretionary sector's loss of 2.88% and falling behind the S&P 500's loss of 1.43%.
The upcoming earnings release of Warner Bros. Discovery will be of great interest to investors. The company's upcoming EPS is projected at $0.08, signifying a 140.00% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.46 billion, down 5.7% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $0.64 per share and a revenue of $37.29 billion, demonstrating changes of +113.85% and -5.17%, respectively, from the preceding 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, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 12.1% fall in the Zacks Consensus EPS estimate. Right now, Warner Bros. Discovery possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Warner Bros. Discovery is holding a Forward P/E ratio of 121.7. This valuation marks a premium compared to its industry average Forward P/E of 10.75.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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