Warner Bros. Discovery (WBD) Stock Moves -0.29%: What You Should Know

Warner Bros. Discovery (WBD) closed the latest trading day at $10.25, indicating a -0.29% change from the previous session's end. This change traded in line with S&P 500. Meanwhile, the Dow experienced a drop of 0.32%, and the technology-dominated Nasdaq saw a decrease of 0.5%.

Prior to today's trading, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 3.2% over the past month. This has lagged the Consumer Discretionary sector's gain of 1.26% and the S&P 500's gain of 2.52% in that time.

Market participants will be closely following the financial results of Warner Bros. Discovery in its upcoming release. The company plans to announce its earnings on February 27, 2025. The company is predicted to post an EPS of $0.11, indicating a 168.75% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $10.36 billion, indicating a 0.77% increase compared to the same quarter of the previous year.

Any recent changes to analyst estimates for Warner Bros. Discovery should also be noted by investors. Such recent modifications usually signify the changing landscape of near-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 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1290% upward. Warner Bros. Discovery presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Warner Bros. Discovery is currently trading at a Forward P/E ratio of 56.91. This indicates a premium in contrast to its industry's Forward P/E of 11.14.

It's also important to note that WBD currently trades at a PEG ratio of 6.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Broadcast Radio and Television industry had an average PEG ratio of 1.2.

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.