Why Warner Bros. Discovery (WBD) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum, aiding in identifying securities likely to outperform the market [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on their value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Cash Flow [4] - The Growth Score assesses a company's future prospects through projected earnings and sales growth [5] - The Momentum Score identifies optimal entry points based on price trends and earnings estimate changes [6] Integration with Zacks Rank - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [7][8] - To maximize returns, investors should prioritize stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still face downward price pressure due to negative earnings forecasts [10] Company Spotlight: Warner Bros. Discovery (WBD) - Warner Bros. Discovery emerged from the merger of AT&T's WarnerMedia and Discovery, trading under the symbol WBD since April 11, 2022 [11] - WBD holds a Zacks Rank of 3 (Hold) with a VGM Score of A and a Momentum Style Score of A, having increased 62.1% in the past four weeks [11] - Recent upward revisions in earnings estimates for fiscal 2025 have raised the Zacks Consensus Estimate by $0.38 to $0.34 per share, with an average earnings surprise of +3.8% [12]