Warner Bros. Discovery Stock Sinks As Market Gains: Here's Why

Abu Dhabi Uae Circa 2019 Warner Brothers Theme Park Warner — Stock Photo, Image

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The most recent trading session ended with Warner Bros. Discovery (WBD) standing at $8.32, reflecting a -1.42% shift from the previouse trading day's closing. This change lagged the S&P 500's 1.11% gain on the day. Meanwhile, the Dow experienced a rise of 0.8%, and the technology-dominated Nasdaq saw an increase of 1.24%.

The operator of cable TV channels such as TLC and Animal Planet's shares have seen a decrease of 3.43% over the last month, not keeping up with the Consumer Discretionary sector's loss of 1.14% and the S&P 500's gain of 0.48%.

The investment community will be closely monitoring the performance of Warner Bros. Discovery in its forthcoming earnings report. The company is forecasted to report an EPS of -$0.23, showcasing a 227.78% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $10.23 billion, down 4.37% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.34 per share and a revenue of $41.47 billion, representing changes of +73.44% and +0.37%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Warner Bros. Discovery. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Warner Bros. Discovery presently features a Zacks Rank of #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 213, positioning it in the bottom 16% 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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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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