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Warner Bros. Discovery (WBD) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Warner Bros. Discovery (WBD - Free Report) closed at $14.24, marking a -0.7% move from the previous day. This change lagged the S&P 500's 0.89% gain on the day. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, lost 0.68%.

Coming into today, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 7.06% in the past month. In that same time, the Consumer Discretionary sector lost 7.98%, while the S&P 500 lost 3.9%.

Warner Bros. Discovery will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.16, down 76.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.67 billion, up 237.75% from the year-ago period.

WBD's full-year Zacks Consensus Estimates are calling for earnings of $1.11 per share and revenue of $43.95 billion. These results would represent year-over-year changes of +141.3% and +29.95%, respectively.

Investors might also notice recent changes to analyst estimates for Warner Bros. Discovery. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection has moved 15.05% higher. Warner Bros. Discovery is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Warner Bros. Discovery is holding a Forward P/E ratio of 12.93. Its industry sports an average Forward P/E of 11.48, so we one might conclude that Warner Bros. Discovery is trading at a premium comparatively.

Meanwhile, WBD's PEG ratio is currently 0.99. 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 1.1 at yesterday's closing price.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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