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.
Momentum Indicator for WBD turns negative, indicating new downward trend
WBD saw its Momentum Indicator move below the 0 level on May 19, 2023. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 95 similar instances where the indicator turned negative. In of the 95 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for WBD turned negative on May 16, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 40 similar instances when the indicator turned negative. In of the 40 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for WBD entered a downward trend on June 01, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
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, of 43 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 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 upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WBD advanced for three days, in of 304 cases, the price rose further within the following month. The odds of a continued upward trend are .
WBD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (0.595) is normal, around the industry mean (4.164). P/E Ratio (7.220) is within average values for comparable stocks, (73.786). Projected Growth (PEG Ratio) (1.649) is also within normal values, averaging (2.625). WBD has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.059). P/S Ratio (0.659) is also within normal values, averaging (111.483).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. WBD’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (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 SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 Profit vs. Risk Rating rating for this company is (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 89, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of multi-media educational and entertainment programming services
Industry MoviesEntertainment
WBD and
Correlation & Price change
A.I.dvisor indicates that over the last year, WBD has been loosely correlated with AMCX. These tickers have moved in lockstep 64% of the time. This A.I.-generated data suggests there is some statistical probability that if WBD jumps, then AMCX could also see price increases.
| Ticker / NAME | Correlation To WBD | 1D Price Change % | ||
|---|---|---|---|---|
| WBD | 100% | +0.62% | ||
| AMCX - WBD | 64% Loosely correlated | +0.88% | ||
| PARAA - WBD | 64% Loosely correlated | +1.31% | ||
| PARA - WBD | 63% Loosely correlated | +1.18% | ||
| PARAP - WBD | 62% Loosely correlated | +0.77% | ||
| FOX - WBD | 58% Loosely correlated | -0.03% | ||
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