Netflix, Warner Bros., and Paramount logos dramatically presented against a plain background. Key Points Warner Bros. Discovery rose more than 170% in 2025, leading S&P 500 communications stocks. Following the Warner Bros.-Netflix deal, Paramount Skydance is continuing to pursue Warner Bros. However, WBD isn't budging. See what its latest rejection of PSKY's offer means for all three stocks. Interested in Warner Bros. Discovery, Inc.? Here are five stocks we like better. Shares of entertainment gi ...

Core Insights - Paramount Skydance Corporation (PSKY) is a newly formed entertainment entity with a market cap of $12.9 billion, resulting from the merger of Paramount Global and Skydance Media, and operates across various segments including streaming, film, television, sports, and gaming [1] Performance Overview - PSKY stock has increased by 48.2% over the past 52 weeks, significantly outperforming the S&P 500 Index, which gained 10.5% during the same period [2] - In the last six months, PSKY's stock rose by 32.1%, while the S&P 500 returned 10.1% [2] - The company also outperformed the Communication Services Select Sector SPDR ETF Fund (XLC), which saw a 13% gain over the past year and an 8.2% return over the last six months [3] Financial Results - For Q3, Paramount Skydance reported total revenue of $4.1 billion and a net loss of $0.01 per share, with streaming revenue increasing approximately 17% year over year [4] - Filmed entertainment revenue grew nearly 30% due to the Skydance integration, while legacy TV/media revenue declined about 12% due to weak advertising and linear viewership [4] - Non-GAAP OIBDA was reported at $655 million, and the company raised its cost-savings target to $3 billion, with over $1.5 billion earmarked for programming investments by 2026 [4] Analyst Expectations - Analysts project a 45.5% year-over-year decline in EPS for the current fiscal year, estimating it to be $0.84 [5] - The consensus rating among 24 analysts is "Hold," with one "Strong Buy," 15 "Holds," one "Moderate Sell," and seven "Strong Sells" [5] Price Target Insights - Citi's Jason Bazinet maintained a "Hold" rating on PSKY with a price target of $20, indicating a potential upside of 27.6% from current trading levels, which are above the mean price target of $14.26 [6]

Core Viewpoint - TKO Group Holdings reported quarterly earnings of $0.5 per share, missing the consensus estimate of $0.55 per share, and showing a decline from $0.53 per share a year ago [1][2] Financial Performance - The company posted revenues of $1.12 billion for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 4.13%, and up from $681.2 million year-over-year [3] - TKO Group has surpassed consensus revenue estimates four times over the last four quarters [3] Stock Performance - TKO Group shares have increased approximately 31.8% since the beginning of the year, outperforming the S&P 500's gain of 15.1% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $1.01 billion, and for the current fiscal year, it is $2.84 on revenues of $4.66 billion [8] - The estimate revisions trend for TKO Group was mixed ahead of the earnings release, which may change following the recent report [7] Industry Context - The Film and Television Production and Distribution industry, to which TKO Group belongs, is currently ranked in the bottom 13% of over 250 Zacks industries, indicating potential challenges ahead [9]

Core Viewpoint - TKO Group Holdings reported quarterly earnings of $1.17 per share, missing the consensus estimate of $1.23 per share, but showing an increase from $0.72 per share a year ago [1][2] Financial Performance - The company posted revenues of $1.31 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 8.78%, compared to $851.2 million in the same quarter last year [3] - TKO Group has surpassed consensus revenue estimates four times over the last four quarters [3] Stock Performance - TKO Group shares have increased approximately 15% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [4] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $1.1 billion, and for the current fiscal year, it is $2.83 on revenues of $4.55 billion [8] - The estimate revisions trend for TKO Group was unfavorable prior to the earnings release, which may impact future stock performance [7] Industry Context - The Film and Television Production and Distribution industry, to which TKO Group belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, suggesting potential challenges ahead [9]

Company Overview - TKO Group Holdings (TKO) is expected to report a year-over-year increase in earnings due to higher revenues for the quarter ended June 2025, with a consensus outlook indicating a quarterly earnings of $1.23 per share, representing a +70.8% change, and revenues expected to be $1.2 billion, up 41.3% from the previous year [1][3]. Earnings Estimates and Revisions - The consensus EPS estimate has been revised 5.69% higher over the last 30 days, reflecting a reassessment by covering analysts [4]. - The Most Accurate Estimate for TKO Group is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -48.11%, indicating a bearish outlook on the company's earnings prospects [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative Earnings ESP reading indicates the likely deviation of actual earnings from the consensus estimate, with a positive reading being a strong predictor of an earnings beat [9][10]. - TKO Group currently holds a Zacks Rank of 3, making it difficult to predict an earnings beat conclusively [12]. Historical Performance - In the last reported quarter, TKO Group had an earnings surprise of +43.75%, with actual earnings of $0.69 per share compared to an expected $0.48 [13]. - Over the last four quarters, TKO Group has beaten consensus EPS estimates two times [14]. Industry Context - In the Zacks Film and Television Production and Distribution industry, Cinemark Holdings (CNK) is expected to post earnings of $0.78 per share for the same quarter, indicating a year-over-year change of +143.8%, with revenues expected to be $947.59 million, up 29.1% [18][19].

Core Viewpoint - Lionsgate is set to release its financial results for the fiscal 2026 first quarter on August 7, 2025, after market close [1] Group 1: Financial Results Announcement - The financial results for the fiscal 2026 first quarter ended June 30, 2025, will be announced after market close on August 7, 2025 [1] - An analyst and investor conference call will be held on the same day at 5:00 P.M. ET/2:00 P.M. PT to discuss the results [2] Group 2: Company Overview - Lionsgate is recognized as one of the leading standalone, publicly-traded content companies globally [3] - The company encompasses diversified motion picture and television production and distribution businesses, a valuable portfolio of brands and franchises, and a significant film and television library exceeding 20,000 titles [3]

Market Overview - The broader equity markets have shown a steady uptrend as investors remain optimistic despite tariff threats from President Trump on 14 countries, including Japan and South Korea [1] - Investors are hopeful for a mutually beneficial solution to avoid market turmoil as they look forward to a busy earnings season [1][2] Trade Relations - Positive discussions between U.S.-China diplomats regarding trade tariffs and potential peace talks between U.S. officials and Iran have contributed to market stability [2] - Investors are awaiting clarity on interest rate cuts with inflation data expected to be released soon [2] Investment Strategy - Investors are advised to focus on "cash cow" stocks that provide higher returns, emphasizing the importance of attractive efficiency ratios like return on equity (ROE) [3] - High ROE indicates effective reinvestment of cash at a high rate of return, distinguishing profitable companies from less efficient ones [4][5] Stock Screening Parameters - Stocks are screened based on criteria including cash flow greater than $1 billion and ROE exceeding industry averages [6] - Additional metrics include Price/Cash Flow lower than industry average and Return on Assets (ROA) greater than industry average [7] Featured Stocks - **Walt Disney**: Long-term earnings growth expectation of 11.8% with a trailing four-quarter earnings surprise of 16.4% on average, Zacks Rank 2 [8][9] - **TE Connectivity**: Long-term earnings growth expectation of 9.8% with a trailing four-quarter earnings surprise of 3.3% on average, Zacks Rank 2 [10][11] - **Fortinet**: Long-term earnings growth expectation of 13.4% with a trailing four-quarter earnings surprise of 23.8% on average, Zacks Rank 2 [12][13] - **Banco Bilbao**: Long-term earnings growth expectation of 5.5% with a trailing four-quarter earnings surprise of 6.3% on average, Zacks Rank 1 [13][14] - **Colgate-Palmolive**: Long-term earnings growth expectation of 5.2% with a trailing four-quarter earnings surprise of 4% on average, Zacks Rank 2 [14][15]

Group 1 - Zacks Premium offers tools for investors to enhance their stock market confidence and knowledge, including daily updates, research reports, and stock screens [1][2] - The Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, helping investors identify securities likely to outperform the market [2][3] Group 2 - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E and Price/Sales [3] - The Growth Score assesses a company's financial health and future outlook, analyzing projected earnings and sales for sustainable growth [4] - The Momentum Score identifies trends in stock prices and earnings estimates, aiding investors in timing their stock purchases [5] Group 3 - The VGM Score combines the three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, growth potential, and positive momentum [6] - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios [7][8] Group 4 - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9][10] Group 5 - Walt Disney Company reported revenues of $91.4 billion in fiscal 2024 and holds a Zacks Rank of 2 (Buy) with a VGM Score of B [11] - Disney's Growth Style Score of B indicates a forecasted year-over-year earnings growth of 16.3% for the current fiscal year [11] - Recent analyst revisions have increased Disney's earnings estimate for fiscal 2025, with the Zacks Consensus Estimate rising to $5.78 per share [12]

Core Insights - The Zacks Focus List is a curated portfolio of 50 stocks aimed at long-term investors, expected to outperform the market over the next 12 months [3][5] - The Focus List has demonstrated strong past performance, with a cumulative return of 2,519.23% from February 1, 1996, to March 31, 2021, compared to the S&P 500's return of 854.95% [5] - The methodology for selecting stocks in the Focus List relies heavily on earnings estimate revisions, which are critical for predicting future growth and profitability [6][7] Focus List Performance - In 2020, the Focus List gained 13.85% on an annualized basis, outperforming the S&P 500's return of 9.38% [5] - The portfolio's historical performance reinforces its value as a starting point for investors [5] Stock Selection Methodology - Stocks are chosen based on the Zacks Rank, which utilizes earnings estimate revisions to identify potential winners [8][9] - The Zacks Rank is based on four main factors: Agreement, Magnitude, Upside, and Surprise, which are recalculated nightly [9] Case Study: Walt Disney Company - Walt Disney Company reported revenues of $91.4 billion in fiscal 2024 and was added to the Focus List at $85.98 per share, with shares increasing by 29.25% to $111.13 since then [11] - Eight analysts have revised Disney's earnings estimate higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.24 to $5.72, and an average earnings surprise of 16.4% [12]

Market Overview - Stock markets are experiencing significant volatility due to the ongoing tariff war, leading to expectations of economic slowdown and rising inflation [1] - The Federal Reserve has kept interest rates unchanged at 4.25-4.5% amid these uncertainties [1] Broker Recommendations - Following brokers' recommendations can simplify stock selection; stocks like Walt Disney Company (DIS), Cognizant Technology (CTSH), and Expand Energy Corporation (EXE) are highlighted as worth buying [2] - Brokers have insights from direct communication with top management and assess publicly available documents, providing a better understanding of company fundamentals and sector performance [3] Stock Selection Strategy - A screening strategy for potential winners includes: - Broker rating upgrades of 1% or more over the last four weeks [5] - Current stock price greater than $5 [5] - Average 20-day trading volume greater than 100,000 [5] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) have a proven record of success, especially when combined with a VGM Score of A or B [6] Company Highlights - **Walt Disney Company (DIS)**: - Expected fiscal 2025 earnings growth of 13.3% year-over-year - Currently holds a Zacks Rank 2 with a 3.5% upward revision in broker ratings over the past four weeks [7] - **Cognizant Technology (CTSH)**: - Projected 2025 earnings growth of 6.5% year-over-year - Currently holds a Zacks Rank 2 with a 4.4% upward revision in broker ratings over the past four weeks [8] - **Expand Energy Corporation (EXE)**: - Expected 2025 earnings growth of 444.7% year-over-year - Currently holds a Zacks Rank 2 with a 7.7% upward revision in broker ratings over the past four weeks [10]