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Warner Bros. Discovery (WBD) Beats Stock Market Upswing: What Investors Need to Know

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The most recent trading session ended with Warner Bros. Discovery (WBD - Free Report) standing at $8.15, reflecting a +0.49% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.32% gain on the day. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 0.35%.

Prior to today's trading, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 7.1% over the past month. This has lagged the Consumer Discretionary sector's loss of 6.24% and the S&P 500's loss of 2% in that time.

The investment community will be paying close attention to the earnings performance of Warner Bros. Discovery in its upcoming release. The company is slated to reveal its earnings on May 9, 2024. The company's earnings per share (EPS) are projected to be -$0.23, reflecting a 227.78% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $10.22 billion, down 4.53% from the year-ago period.

WBD's full-year Zacks Consensus Estimates are calling for earnings of -$0.33 per share and revenue of $41.43 billion. These results would represent year-over-year changes of +74.22% and +0.27%, respectively.

It is also important to note the recent changes to analyst estimates for Warner Bros. Discovery. Such recent modifications usually signify the changing landscape 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.91% increase. Warner Bros. Discovery is currently a Zacks Rank #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 226, positioning it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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