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Warner Bros. Discovery (WBD) Rises But Trails Market: What Investors Should Know

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In the latest market close, Warner Bros. Discovery (WBD - Free Report) reached $7.61, with a +0.13% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.27%. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq gained 0.26%.

Shares of the operator of cable TV channels such as TLC and Animal Planet witnessed a loss of 9.31% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 1.51% and the S&P 500's gain of 2%.

The upcoming earnings release of Warner Bros. Discovery will be of great interest to investors. The company's earnings report is expected on November 7, 2024. The company is predicted to post an EPS of -$0.05, indicating a 70.59% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.98 billion, indicating constancy compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$4.50 per share and revenue of $40.46 billion. These totals would mark changes of -251.56% and -2.08%, respectively, from last year.

Investors should also note any 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 0.78% lower within the past month. Right now, Warner Bros. Discovery possesses a Zacks Rank of #5 (Strong Sell).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 171, this industry ranks in the bottom 33% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

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


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