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

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Warner Bros. Discovery (WBD - Free Report) ended the recent trading session at $18.45, demonstrating a +2.61% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.4%. Elsewhere, the Dow saw a downswing of 0.04%, while the tech-heavy Nasdaq appreciated by 0.66%.

Prior to today's trading, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 1.48% was narrower than the Consumer Discretionary sector's loss of 3.58% and lagged the S&P 500's gain of 1.02%.

Analysts and investors alike will be keeping a close eye on the performance of Warner Bros. Discovery in its upcoming earnings disclosure. The company's upcoming EPS is projected at -$0.05, signifying a 200.00% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.16 billion, down 4.82% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.36 per share and revenue of $37.55 billion. These totals would mark changes of +107.79% and -4.51%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Warner Bros Discovery. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 9.14% higher. Right now, Warner Bros. Discovery possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Warner Bros. Discovery is presently trading at a Forward P/E ratio of 50.04. For comparison, its industry has an average Forward P/E of 29.6, which means Warner Bros. Discovery is trading at a premium to the group.

It is also worth noting that WBD currently has a PEG ratio of 2.2. 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 average PEG ratio for the Broadcast Radio and Television industry stood at 1.86 at the close of the market yesterday.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 88, positioning it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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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