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Is Warner Bros. Discovery (WBD) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Warner Bros. Discovery (WBD - Free Report) . WBD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.70 right now. For comparison, its industry sports an average P/E of 21.31. Over the past year, WBD's Forward P/E has been as high as 14.43 and as low as 5.89, with a median of 8.92.
Investors should also note that WBD holds a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WBD's industry currently sports an average PEG of 2.55. Over the last 12 months, WBD's PEG has been as high as 1.49 and as low as 0.67, with a median of 1.01.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Warner Bros. Discovery is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WBD feels like a great value stock at the moment.
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Is Warner Bros. Discovery (WBD) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Warner Bros. Discovery (WBD - Free Report) . WBD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.70 right now. For comparison, its industry sports an average P/E of 21.31. Over the past year, WBD's Forward P/E has been as high as 14.43 and as low as 5.89, with a median of 8.92.
Investors should also note that WBD holds a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WBD's industry currently sports an average PEG of 2.55. Over the last 12 months, WBD's PEG has been as high as 1.49 and as low as 0.67, with a median of 1.01.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Warner Bros. Discovery is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WBD feels like a great value stock at the moment.