Warner Bros Discovery Stock Buy Hold or Sell Recommendation
| WBD Stock | USD 9.52 0.05 0.53% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Warner Bros Discovery is 'Strong Buy'. Macroaxis provides Warner Bros buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding WBD positions.
Check out Warner Bros Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Warner and provide practical buy, sell, or hold advice based on investors' constraints. Warner Bros Discovery. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.
Warner |
Execute Warner Bros Buy or Sell Advice
The Warner recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Warner Bros Discovery. Macroaxis does not own or have any residual interests in Warner Bros Discovery or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Warner Bros' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Buy
Market Performance | OK | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Above Average | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Warner Bros Trading Alerts and Improvement Suggestions
| Warner Bros had very high historical volatility over the last 90 days | |
| Warner Bros has high likelihood to experience some financial distress in the next 2 years | |
| Warner Bros Discovery has 47.28 B in debt with debt to equity (D/E) ratio of 1.07, which is OK given its current industry classification. Warner Bros Discovery has a current ratio of 0.84, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Warner to invest in growth at high rates of return. | |
| The entity reported the last year's revenue of 41.32 B. Reported Net Loss for the year was (3.13 B) with profit before taxes, overhead, and interest of 16.46 B. | |
| Warner Bros has a poor financial position based on the latest SEC disclosures | |
| About 64.0% of Warner Bros outstanding shares are owned by institutional investors | |
| Latest headline from prnewswire.com: WBD DEADLINE WBD Investors Have Opportunity to Lead Warner Bros. Discovery, Inc. Securities Fraud Lawsuit |
Warner Bros Returns Distribution Density
The distribution of Warner Bros' historical returns is an attempt to chart the uncertainty of Warner Bros' future price movements. The chart of the probability distribution of Warner Bros daily returns describes the distribution of returns around its average expected value. We use Warner Bros Discovery price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Warner Bros returns is essential to provide solid investment advice for Warner Bros.
| Mean Return | 0.41 | Value At Risk | -3.89 | Potential Upside | 5.26 | Standard Deviation | 3.45 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Warner Bros historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Warner Stock Institutional Investors
| Shares | Hotchkis & Wiley Capital Management Llc | 2024-09-30 | 20.9 M | Northern Trust Corp | 2024-09-30 | 20.3 M | Bank Of America Corp | 2024-09-30 | 19.3 M | Contrarius Investment Management Ltd | 2024-09-30 | 19.1 M | Jpmorgan Chase & Co | 2024-09-30 | 17.7 M | Slate Path Capital Lp | 2024-09-30 | 17.4 M | Charles Schwab Investment Management Inc | 2024-09-30 | 15.7 M | Legal & General Group Plc | 2024-09-30 | 15.4 M | Bank Of New York Mellon Corp | 2024-09-30 | 14.4 M | Vanguard Group Inc | 2024-09-30 | 251 M | Blackrock Inc | 2024-09-30 | 166.8 M |
Warner Bros Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change In Cash | 570M | 1.8B | 25M | 389M | 447.4M | 226.3M | |
| Free Cash Flow | 2.3B | 2.4B | 3.3B | 6.2B | 7.1B | 7.4B | |
| Depreciation | 4.3B | 5.1B | 21.4B | 24.0B | 27.6B | 29.0B | |
| Other Non Cash Items | 244M | 88M | 3.7B | 427M | 491.1M | 416.7M | |
| Capital Expenditures | 402M | 373M | 987M | 1.3B | 1.5B | 1.6B | |
| Net Income | 1.4B | 1.2B | (7.3B) | (3.1B) | (2.8B) | (2.7B) | |
| End Period Cash Flow | 2.1B | 3.9B | 3.9B | 4.3B | 5.0B | 5.2B | |
| Change To Inventory | 4M | (105M) | (47M) | (181M) | (162.9M) | (154.8M) | |
| Investments | (703M) | (56M) | 890M | (1.3B) | (1.4B) | (1.5B) | |
| Net Borrowings | (1.4B) | (214M) | (574M) | (7.3B) | (6.6B) | (6.3B) | |
| Change To Netincome | 170M | 352M | (49M) | 324M | 291.6M | 230.9M |
Warner Bros Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Warner Bros or Entertainment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Warner Bros' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Warner stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.40 | |
β | Beta against Dow Jones | 0.49 | |
σ | Overall volatility | 3.47 | |
Ir | Information ratio | 0.12 |
Warner Bros Volatility Alert
Warner Bros Discovery currently demonstrates below-average downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.4. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Warner Bros' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Warner Bros' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Warner Bros Implied Volatility
Warner Bros' implied volatility exposes the market's sentiment of Warner Bros Discovery stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Warner Bros' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Warner Bros stock will not fluctuate a lot when Warner Bros' options are near their expiration.
Warner Bros Fundamentals Vs Peers
Comparing Warner Bros' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Warner Bros' direct or indirect competition across all of the common fundamentals between Warner Bros and the related equities. This way, we can detect undervalued stocks with similar characteristics as Warner Bros or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Warner Bros' fundamental indicators could also be used in its relative valuation, which is a method of valuing Warner Bros by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Warner Bros to competition |
| Fundamentals | Warner Bros | Peer Average |
| Return On Equity | -0.27 | -0.31 |
| Return On Asset | -0.0015 | -0.14 |
| Profit Margin | (0.28) % | (1.27) % |
| Operating Margin | 0.05 % | (5.51) % |
| Current Valuation | 60.1 B | 16.62 B |
| Shares Outstanding | 2.45 B | 571.82 M |
| Shares Owned By Insiders | 9.12 % | 10.09 % |
| Shares Owned By Institutions | 64.26 % | 39.21 % |
| Number Of Shares Shorted | 80.05 M | 4.71 M |
| Price To Earning | 6.34 X | 28.72 X |
| Price To Book | 0.66 X | 9.51 X |
| Price To Sales | 0.59 X | 11.42 X |
| Revenue | 41.32 B | 9.43 B |
| Gross Profit | 16.46 B | 27.38 B |
| EBITDA | 6.38 B | 3.9 B |
| Net Income | (3.13 B) | 570.98 M |
| Cash And Equivalents | 3.73 B | 2.7 B |
| Cash Per Share | 1.00 X | 5.01 X |
| Total Debt | 47.28 B | 5.32 B |
| Debt To Equity | 1.07 % | 48.70 % |
| Current Ratio | 0.86 X | 2.16 X |
| Book Value Per Share | 14.31 X | 1.93 K |
| Cash Flow From Operations | 7.48 B | 971.22 M |
| Short Ratio | 2.73 X | 4.00 X |
| Earnings Per Share | (4.58) X | 3.12 X |
| Price To Earnings To Growth | 2.79 X | 4.89 X |
| Target Price | 12.66 | |
| Number Of Employees | 35.3 K | 18.84 K |
| Beta | 1.48 | -0.15 |
| Market Capitalization | 23.23 B | 19.03 B |
| Total Asset | 122.76 B | 29.47 B |
| Retained Earnings | (928 M) | 9.33 B |
| Working Capital | (1.11 B) | 1.48 B |
Note: Acquisition by David Zaslav of 1270188 shares of Warner Bros subject to Rule 16b-3 [view details]
Warner Bros Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Warner . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 379411.0 | |||
| Daily Balance Of Power | 0.2632 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 9.59 | |||
| Day Typical Price | 9.57 | |||
| Price Action Indicator | (0.05) | |||
| Period Momentum Indicator | 0.05 |
About Warner Bros Buy or Sell Advice
When is the right time to buy or sell Warner Bros Discovery? Buying financial instruments such as Warner Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Is Interactive Home Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Warner Bros. If investors know Warner will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Warner Bros listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 2.267 | Earnings Share (4.58) | Revenue Per Share | Quarterly Revenue Growth (0.04) | Return On Assets |
The market value of Warner Bros Discovery is measured differently than its book value, which is the value of Warner that is recorded on the company's balance sheet. Investors also form their own opinion of Warner Bros' value that differs from its market value or its book value, called intrinsic value, which is Warner Bros' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Warner Bros' market value can be influenced by many factors that don't directly affect Warner Bros' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Warner Bros' value and its price as these two are different measures arrived at by different means. Investors typically determine if Warner Bros is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Warner Bros' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.