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Sinclair (SBGI) Falls More Steeply Than Broader Market: What Investors Need to Know

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Sinclair (SBGI - Free Report) closed at $16.25 in the latest trading session, marking a -1.22% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.06%. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq lost 0.76%.

Shares of the television broadcasting company witnessed a gain of 26.25% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 2.59% and the S&P 500's gain of 3.36%.

Analysts and investors alike will be keeping a close eye on the performance of Sinclair in its upcoming earnings disclosure. In that report, analysts expect Sinclair to post earnings of $0.46 per share. This would mark a year-over-year decline of 48.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $834.22 million, down 13.1% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Sinclair. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Sinclair presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Sinclair is holding a Forward P/E ratio of 4.24. This represents a discount compared to its industry's average Forward P/E of 18.59.

It is also worth noting that SBGI currently has a PEG ratio of 1.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Media Conglomerates was holding an average PEG ratio of 1.79 at yesterday's closing price.

The Media Conglomerates industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 110, this industry ranks in the top 44% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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