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Warner Bros. Discovery (WBD) Dips More Than Broader Markets: What You Should Know
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Warner Bros. Discovery (WBD - Free Report) closed at $14.37 in the latest trading session, marking a -1.3% move from the prior day. This move lagged the S&P 500's daily loss of 0.88%. At the same time, the Dow lost 0.73%, and the tech-heavy Nasdaq lost 4.59%.
Coming into today, shares of the operator of cable TV channels such as TLC and Animal Planet had gained 15.56% in the past month. In that same time, the Consumer Discretionary sector gained 8.19%, while the S&P 500 gained 5.83%.
Investors will be hoping for strength from Warner Bros. Discovery as it approaches its next earnings release, which is expected to be February 23, 2023. The company is expected to report EPS of $0.08, down 42.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.13 billion, up 249.24% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Warner Bros. Discovery. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 4.73% higher within the past month. Warner Bros. Discovery is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Warner Bros. Discovery currently has a Forward P/E ratio of 14.74. Its industry sports an average Forward P/E of 15.78, so we one might conclude that Warner Bros. Discovery is trading at a discount comparatively.
Meanwhile, WBD's PEG ratio is currently 1.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Broadcast Radio and Television industry currently had an average PEG ratio of 1.65 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% 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 (WBD) Dips More Than Broader Markets: What You Should Know
Warner Bros. Discovery (WBD - Free Report) closed at $14.37 in the latest trading session, marking a -1.3% move from the prior day. This move lagged the S&P 500's daily loss of 0.88%. At the same time, the Dow lost 0.73%, and the tech-heavy Nasdaq lost 4.59%.
Coming into today, shares of the operator of cable TV channels such as TLC and Animal Planet had gained 15.56% in the past month. In that same time, the Consumer Discretionary sector gained 8.19%, while the S&P 500 gained 5.83%.
Investors will be hoping for strength from Warner Bros. Discovery as it approaches its next earnings release, which is expected to be February 23, 2023. The company is expected to report EPS of $0.08, down 42.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.13 billion, up 249.24% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Warner Bros. Discovery. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 4.73% higher within the past month. Warner Bros. Discovery is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Warner Bros. Discovery currently has a Forward P/E ratio of 14.74. Its industry sports an average Forward P/E of 15.78, so we one might conclude that Warner Bros. Discovery is trading at a discount comparatively.
Meanwhile, WBD's PEG ratio is currently 1.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Broadcast Radio and Television industry currently had an average PEG ratio of 1.65 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% 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.