Warner Bros. Discovery (WBD) Exceeds Market Returns: Some Facts to Consider

The latest trading session saw Warner Bros. Discovery (WBD) ending at $10.19, denoting a +1.29% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.39%. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 0.2%.Shares of the operator of cable TV channels such as TLC and Animal Planet have depreciated by 4.28% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 2.35% and the S&P 500's gain of 1.7%.The upcoming earnings release of Warner Bros. Discovery will be of great interest to investors. The company's earnings report is expected on February 27, 2025. The company's upcoming EPS is projected at $0.11, signifying a 168.75% increase 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.Investors should also note any recent changes to analyst estimates for Warner Bros. Discovery. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1290% increase. Warner Bros. Discovery presently features a Zacks Rank of #3 (Hold).In the context of valuation, Warner Bros. Discovery is at present trading with a Forward P/E ratio of 55.7. This signifies a premium in comparison to the average Forward P/E of 12.22 for its industry.Meanwhile, WBD's PEG ratio is currently 6.13. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Broadcast Radio and Television was holding an average PEG ratio of 1.34 at yesterday's closing price.The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% echelons of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Warner Bros. Discovery, Inc. (WBD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks