Warner Bros. Discovery(US:WBD) ZACKSยท2025-09-29 23:01Core Insights - Warner Bros. Discovery (WBD) closed at $18.86, reflecting a -3.33% change from the previous day, underperforming the S&P 500's gain of 0.26% [1] - The company has seen a significant stock increase of 67.61% over the past month, while the Consumer Discretionary sector has decreased by 0.21% [1] Earnings Expectations - The upcoming earnings release is expected to show an EPS of -$0.08, a 260% decline year-over-year, with revenue anticipated at $9.13 billion, down 5.17% from the previous year [2] - For the full year, earnings are projected at $0.34 per share and revenue at $37.52 billion, indicating a 107.36% increase in earnings but a 4.58% decrease in revenue compared to the prior year [3] Analyst Estimates and Stock Performance - Recent changes in analyst estimates are crucial for investors, as positive revisions can indicate an optimistic business outlook [3][4] - The Zacks Rank system, which evaluates estimate changes, has shown that stocks rated 1 (Strong Buy) have historically outperformed, with an average annual return of +25% since 1988 [5] Valuation Metrics - Warner Bros. Discovery has a Forward P/E ratio of 58, significantly higher than the industry average of 29.62, indicating a premium valuation [6] - The company has a PEG ratio of 2.54, compared to the industry average of 2.01, suggesting a higher expected earnings growth rate relative to its price [7] Industry Context - The Broadcast Radio and Television industry, part of the Consumer Discretionary sector, ranks 183rd in the Zacks Industry Rank, placing it in the bottom 26% of over 250 industries [8]