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Warner Bros. Discovery (WBD) Stock Dips While Market Gains: Key Facts

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In the latest trading session, Warner Bros. Discovery (WBD - Free Report) closed at $18.99, marking a -1.3% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.01%. Elsewhere, the Dow saw an upswing of 0.51%, while the tech-heavy Nasdaq depreciated by 0.28%.

Heading into today, shares of the operator of cable TV channels such as TLC and Animal Planet had gained 63.47% over the past month, outpacing the Consumer Discretionary sector's loss of 1.11% and the S&P 500's gain of 4.83%.

Investors will be eagerly watching for the performance of Warner Bros. Discovery in its upcoming earnings disclosure. In that report, analysts expect Warner Bros. Discovery to post earnings of -$0.08 per share. This would mark a year-over-year decline of 260%. Meanwhile, our latest consensus estimate is calling for revenue of $9.14 billion, down 5.02% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.34 per share and revenue of $37.53 billion, which would represent changes of +107.36% and -4.55%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Warner Bros Discovery. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.21% higher. Currently, Warner Bros. Discovery is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Warner Bros. Discovery is currently trading at a Forward P/E ratio of 56.08. This expresses a premium compared to the average Forward P/E of 31.9 of its industry.

Also, we should mention that WBD has a PEG ratio of 2.46. 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 Broadcast Radio and Television industry had an average PEG ratio of 1.94 as trading concluded yesterday.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 175, positioning it in the bottom 30% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow WBD in the coming trading sessions, be sure to utilize Zacks.com.


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