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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) closed at $10.62 in the latest trading session, marking a +1.82% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.53%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.25%.

Shares of the operator of cable TV channels such as TLC and Animal Planet witnessed a loss of 1.32% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 2.88% and the S&P 500's gain of 1.24%.

The investment community will be closely monitoring the performance of Warner Bros. Discovery in its forthcoming earnings report. The company is scheduled to release its earnings on February 27, 2025. It is anticipated that the company will report an EPS of $0.11, marking a 168.75% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $10.36 billion, indicating a 0.77% growth compared to the corresponding quarter of the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Warner Bros. Discovery. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1290% increase. As of now, Warner Bros. Discovery holds a Zacks Rank of #3 (Hold).

Digging into valuation, Warner Bros. Discovery currently has a Forward P/E ratio of 57.74. This valuation marks a premium compared to its industry's average Forward P/E of 10.86.

We can also see that WBD currently has a PEG ratio of 6.36. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Broadcast Radio and Television industry stood at 1.25 at the close of the market yesterday.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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