In the latest trading session, Discovery Communications closed at $25.37, marking a +0.4% move from the previous day. This move lagged the S&P 500's daily gain of 2.57%. Elsewhere, the Dow gained 2%, while the tech-heavy Nasdaq added 0.3%.
Coming into today, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 10.42% in the past month. In that same time, the Consumer Discretionary sector lost 11.25%, while the S&P 500 lost 7.68%.
Discovery Communications will be looking to display strength as it nears its next earnings release. In that report, analysts expect Discovery Communications to post earnings of $0.56 per share. This would mark year-over-year growth of 166.67%. Our most recent consensus estimate is calling for quarterly revenue of $3.17 billion, up 13.56% from the year-ago period.
DISCA's full-year Zacks Consensus Estimates are calling for earnings of $2.79 per share and revenue of $12.58 billion. These results would represent year-over-year changes of +73.29% and +3.18%, respectively.
It is also important to note the recent changes to analyst estimates for Discovery Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 7.1% lower. Discovery Communications currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Discovery Communications has a Forward P/E ratio of 9.05 right now. Its industry sports an average Forward P/E of 10.36, so we one might conclude that Discovery Communications is trading at a discount comparatively.
It is also worth noting that DISCA currently has a PEG ratio of 0.85. 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 was holding an average PEG ratio of 1.26 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Discovery Communications (DISCA) Gains But Lags Market: What You Should Know
In the latest trading session, Discovery Communications closed at $25.37, marking a +0.4% move from the previous day. This move lagged the S&P 500's daily gain of 2.57%. Elsewhere, the Dow gained 2%, while the tech-heavy Nasdaq added 0.3%.
Coming into today, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 10.42% in the past month. In that same time, the Consumer Discretionary sector lost 11.25%, while the S&P 500 lost 7.68%.
Discovery Communications will be looking to display strength as it nears its next earnings release. In that report, analysts expect Discovery Communications to post earnings of $0.56 per share. This would mark year-over-year growth of 166.67%. Our most recent consensus estimate is calling for quarterly revenue of $3.17 billion, up 13.56% from the year-ago period.
DISCA's full-year Zacks Consensus Estimates are calling for earnings of $2.79 per share and revenue of $12.58 billion. These results would represent year-over-year changes of +73.29% and +3.18%, respectively.
It is also important to note the recent changes to analyst estimates for Discovery Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 7.1% lower. Discovery Communications currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Discovery Communications has a Forward P/E ratio of 9.05 right now. Its industry sports an average Forward P/E of 10.36, so we one might conclude that Discovery Communications is trading at a discount comparatively.
It is also worth noting that DISCA currently has a PEG ratio of 0.85. 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 was holding an average PEG ratio of 1.26 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.