Discovery (DISCA, $36.67) stock falls on Q1 earnings miss
On Wednesday, Discovery Inc. shares fell following the company’s first-quarter earnings release.
The media company’s adjusted earnings came in at 21 cents a share, falling behind the 33 cents expected by analysts polled by FactSet. They were also lower from the year-ago quarter’s 55 cents a share.
Revenue rose to $2.79 billion from $2.68 billion a year ago. FactSet consensus was $2.77 billion.
According to the company, it now has 15 million total paying direct-to-consumer subscribers across its platform, including more than 13 million for its Discovery+ streaming platform.
"The global rollout of discovery+ is off to a fantastic start by any measure. Key metrics, including subscriber additions, customer engagement, and retention, are exceeding our expectations and demonstrating sustained momentum into the second quarter," Chief Executive David Zaslav said in a statement.
WBD's Stochastic Oscillator is remaining in oversold zone for 18 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Throughout the month of 04/13/22 - 05/16/22, the price experienced a -34% Downtrend, while the week of 05/09/22 - 05/16/22 shows a +0.64% Uptrend.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where WBD's RSI Oscillator exited the oversold zone, 28 of 44 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 64%.
The Moving Average Convergence Divergence (MACD) for WBD just turned positive on May 16, 2022. Looking at past instances where WBD's MACD turned positive, the stock continued to rise in 31 of 43 cases over the following month. The odds of a continued upward trend are 72%.
Following a +8.91% 3-day Advance, the price is estimated to grow further. Considering data from situations where WBD advanced for three days, in 225 of 308 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.
WBD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Momentum Indicator moved below the 0 level on April 14, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on WBD as a result. In 63 of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 73%.
The 50-day Moving Average for WBD moved below the 200-day moving average on April 20, 2022. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WBD declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 78%.
The Aroon Indicator for WBD entered a downward trend on May 16, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 57%. During the last month, the daily ratio of advancing to declining volumes was 1 to 2.12.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 65 (best 1 - 100 worst), indicating steady price growth. WBD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 65 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 70 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.670) is normal, around the industry mean (4.950). P/E Ratio (8.961) is within average values for comparable stocks, (37.715). Projected Growth (PEG Ratio) (0.400) is also within normal values, averaging (2.471). WBD has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.043). P/S Ratio (0.956) is also within normal values, averaging (134.101).
The Tickeron PE Growth Rating for this company is 88 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. WBD’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
Movies/entertainment industry include companies that produce and distribute motion pictures, and companies that operate general entertainment facilities like amusement parks and bowling centers. Some companies in this industry also have professional sports franchises. Live Nation Entertainment, Inc., Liberty Media Corp. and Viacom Inc. are some of the biggest companies in this space.
The average market capitalization across the Movies/Entertainment Industry is 7.1B. The market cap for tickers in the group ranges from 1.4K to 195.5B. DIS holds the highest valuation in this group at 195.5B. The lowest valued company is GTOR at 1.4K.
The average weekly price growth across all stocks in the Movies/Entertainment Industry was -1.46%. For the same Industry, the average monthly price growth was -11.6%, and the average quarterly price growth was 9.5%. HMTV experienced the highest price growth at 72.94%, while GOAI experienced the biggest fall at -48%.
- 4/14/22 4:49 AM: Warner Bros Discovery (WBD, $26) was a top weekly gainer, with a +8.42% jump
- 3/22/22 5:13 AM: Discovery (DISCA, $26.15) was a top weekly gainer, with a +9.51% jump
- 2/23/22 5:33 AM: Discovery (DISCA, $28.28) was a top loser this week, declining -7.31%
The average weekly volume growth across all stocks in the Movies/Entertainment Industry was 1.09%. For the same stocks of the Industry, the average monthly volume growth was 20.8% and the average quarterly volume growth was 56.64%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Positive Outlook today, backed by the BollingerBands Indicator. Tickeron has a positive outlook on this group and predicts a further increase by more than 3.90% within the next month with a likelihood of 52%. During the last month, the daily ratio of advancing to declining volumes was 1 to 2.24.
16 stocks in the group of tickers confirmed the positive outlook based on the RSI indicator with average odds of 65%.
The most notable companies in this group are Walt Disney Company (The) (NYSE:DIS), Comcast Corp (NASDAQ:CMCSA), Netflix (NASDAQ:NFLX).
The average market capitalization across the group is 31.7B. The market cap for tickers in the group ranges from 0 to 195.5B. DIS holds the highest valuation in this group at 195.5B. The lowest valued company is CCZ at 0.
- 4/21/22 5:15 AM: Netflix (NFLX, $226.19) saw a $55.2B market cap decrease this week
The average weekly price growth across all stocks in the group was 2.93%. For the same group, the average monthly price growth was -12.22%, and the average quarterly price growth was 43.73%. CRGE experienced the highest price growth at 34.69%, while AREN experienced the biggest fall at -22.28%.
- 5/10/22 5:36 AM: Charge Enterprises (CRGE, $3.43) was a top loser this week, declining -47.39%. Expect a Downtrend reversal
- 5/7/22 5:28 AM: Altice USA (ATUS, $10.22) was a top weekly gainer, with a +10.13% jump
- 5/7/22 5:28 AM: Charter Communications (CHTR, $459.77) was a top weekly gainer, with a +7.3% jump
The average weekly volume growth across all stocks in the group was -56.9%. For the same stocks of the group, the average monthly volume growth was -14.98% and the average quarterly volume growth was 138.01%
- 5/11/22 7:39 AM: The volume for Liberty Broadband stock increased for four consecutive days, resulting in a record-breaking daily growth of 129% of the 65-Day Volume Moving Average
- 3/2/22 8:04 AM: The volume for AMC Networks stock increased for one day, resulting in a record-breaking daily growth of 267% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows