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Warner Bros. Discovery (WBD) Stock Sinks As Market Gains: What You Should Know
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Warner Bros. Discovery (WBD - Free Report) closed the most recent trading day at $13.36, moving -1.62% from the previous trading session. This change lagged the S&P 500's 0.09% gain on the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 4.87%.
Coming into today, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 3% in the past month. In that same time, the Consumer Discretionary sector gained 2.89%, while the S&P 500 gained 3.31%.
Warner Bros. Discovery will be looking to display strength as it nears its next earnings release, which is expected to be May 5, 2023. The company is expected to report EPS of $0.21, down 69.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.63 billion, up 236.51% from the prior-year quarter.
WBD's full-year Zacks Consensus Estimates are calling for earnings of $1.09 per share and revenue of $43.43 billion. These results would represent year-over-year changes of +136.96% and +28.41%, respectively.
It is also important to note the recent changes to analyst estimates for Warner Bros. Discovery. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 1.92% lower within the past month. Warner Bros. Discovery is currently a Zacks Rank #3 (Hold).
In terms of valuation, Warner Bros. Discovery is currently trading at a Forward P/E ratio of 12.49. Its industry sports an average Forward P/E of 12.54, so we one might conclude that Warner Bros. Discovery is trading at a discount comparatively.
We can also see that WBD currently has a PEG ratio of 2.08. 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 1.55 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Warner Bros. Discovery (WBD) Stock Sinks As Market Gains: What You Should Know
Warner Bros. Discovery (WBD - Free Report) closed the most recent trading day at $13.36, moving -1.62% from the previous trading session. This change lagged the S&P 500's 0.09% gain on the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 4.87%.
Coming into today, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 3% in the past month. In that same time, the Consumer Discretionary sector gained 2.89%, while the S&P 500 gained 3.31%.
Warner Bros. Discovery will be looking to display strength as it nears its next earnings release, which is expected to be May 5, 2023. The company is expected to report EPS of $0.21, down 69.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.63 billion, up 236.51% from the prior-year quarter.
WBD's full-year Zacks Consensus Estimates are calling for earnings of $1.09 per share and revenue of $43.43 billion. These results would represent year-over-year changes of +136.96% and +28.41%, respectively.
It is also important to note the recent changes to analyst estimates for Warner Bros. Discovery. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 1.92% lower within the past month. Warner Bros. Discovery is currently a Zacks Rank #3 (Hold).
In terms of valuation, Warner Bros. Discovery is currently trading at a Forward P/E ratio of 12.49. Its industry sports an average Forward P/E of 12.54, so we one might conclude that Warner Bros. Discovery is trading at a discount comparatively.
We can also see that WBD currently has a PEG ratio of 2.08. 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 1.55 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.