Warner Bros. Discovery (WBD) Stock Drops Despite Market Gains: Important Facts to Note

In the latest trading session, Warner Bros. Discovery (WBD) closed at $9.85, marking a -1.3% move from the previous day. This change lagged the S&P 500's 0.03% gain on the day. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.36%.The the stock of operator of cable TV channels such as TLC and Animal Planet has risen by 1.42% in the past month, lagging the Consumer Discretionary sector's gain of 7.22% and the S&P 500's gain of 4.19%.Investors will be eagerly watching for the performance of Warner Bros. Discovery in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 27, 2025. On that day, Warner Bros. Discovery is projected to report earnings of $0.10 per share, which would represent year-over-year growth of 162.5%. Alongside, our most recent consensus estimate is anticipating revenue of $10.37 billion, indicating a 0.81% upward movement from the same quarter last year.Investors should also pay attention to any latest changes in analyst estimates for Warner Bros. Discovery. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.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, 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 past month, there's been a 2122.3% rise in the Zacks Consensus EPS estimate. Currently, Warner Bros. Discovery is carrying a Zacks Rank of #3 (Hold).In terms of valuation, Warner Bros. Discovery is presently being traded at a Forward P/E ratio of 70.97. This indicates a premium in contrast to its industry's Forward P/E of 11.46.One should further note that WBD currently holds a PEG ratio of 7.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Broadcast Radio and Television industry stood at 1.18 at the close of the market yesterday.The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 65, finds itself in the top 26% echelons 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.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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