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22

WBD

📡 Communication Services

Warner Bros. Discovery, Inc. -

Conservative #1274Aggressive #1300Moderate RiskMixed 48ML↑ 26pt
$28.90-0.86%
Day High$29.10
Day Low$28.85
Volume22.3M
Mkt Cap$71.7B
52W Low $852W High $30
Market Cap
$69.4B
P/E Ratio
147.3
Sector avg: 120.6
Rev Growth
-4.8%
Sector avg: 15.8%
Earnings Growth
-261.8%
Profit Margin
-28.8%
Sector avg: -116.3%
Debt/Equity
1.16

Why This Score

WBD scores 22.4 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Risk Factors
  • Momentum reversion risk: Extreme momentum (144%) increases mean-reversion probability. 3-point penalty applied.
  • Signal divergence: Fundamental and ML signals disagree by a significant margin, reducing confidence.
  • Elevated valuation at 147.3x earnings — requires sustained growth to justify the premium.
  • Above-average volatility (21.2%) may not suit conservative risk tolerance.
  • Elevated leverage (D/E 1.16) increases financial risk in a rising-rate environment.

Moderate penalties (-7.5 points) reflect identified risk factors. The overall score balances these against the stock's fundamental strengths.

Score Breakdown

Overall Score22.4
Fundamental Score30.7
ML Score8.0

Score by Horizon

3 Month
49.4
6 Month
55.2
Primary
1 Year
58.1

Quality Assessment

A
Earnings Grade
Strong fundamentals, high earnings quality
Speculative Classification
Speculative growth — negative margins and ROE with momentum-driven price action. High risk of mean reversion.
Conservative score reduced by 3 points.

Position Sizing

Suggested Allocation
3.8%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
100
Advancing
Sentiment (2.5%)
58
Neutral
Analyst (6.4%)
61
Favorable
Tradability (post-hoc)
100
Grade A
Base
20.1
SHAP
+2.4
Factors
+1.2
Conviction
-0.2
Divergence
-1.1
Final
22.4
Positive adjustment
Negative adjustment
Base blend
Final score

Factor Breakdown

51AVG
Value40
Quality40
Growth35
Stability60
Investment80

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)18.0
Technical (Momentum, Weinstein, Volatility)84.0
External (Sentiment, Analyst, Macro)55.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage96%

Growth Estimates

Short-term
-4.1% to +0.2%
Medium-term
-5.9% to +0.5%
Long-term
-7.8% to +0.8%

ML Model Core Features100 trained inputs → ML Score: 8

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score61.3/100
Target Upside-11.3%
Coverage31 analysts
Market Sentiment
Sentiment Score57.8/100
News Volume1 articles
Technical Stage
Weinstein Stage2 — Advancing
12M Momentum+1.4%
6M Momentum+1.4%
Volatility+0.2%
Momentum & Technical
Momentum Acceleration+3.8%
Momentum ConsistencyStrong (0.97)
Relative Strength vs Sector+144.2%
Trend Strength (ADX Proxy)Strong (5.0)
Momentum Quality+1.165
Momentum BreadthBroad ✓
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
4%
Low risk
Sector RevGr Rank
P10
Revenue growth vs Communication Services peers
Sector PE Rank
P11
Valuation vs Communication Services peers
Sector FCF Rank
P40
Free cash flow vs Communication Services peers
Growth Deviation
-0.2σ
Z-score vs sector median
Stagnation Flag
NO
Not flagged

Analysis Signals

Scoring Factors
Fundamental score of 32 relative to sector peers32/100
Machine learning model ranks this stock at the 58th percentileP58
ML model weight reduced to 9% due to macro conditions: market in extended rally phase; yield curve inverted (recession indicator); late-cycle economic indicators detected9% ML weight
SHAP feature alignment: +2.4pt (features align with model priorities)—
Blend: 91% fund (32.1) + 9% ML (58.1) + SHAP(+2.4) = 36.8—
Factor quality: +1.2pt (multi-factor composite)—
Risk assessment: moderate. Annualized volatility 21.2%. Max drawdown 19% (-4.5 pts)Moderate
Momentum mean-reversion: -3.2pt (144% 12m momentum)—
Market cap adjustment: +3.5 points ($69.4B market cap)+3.5 pts
Divergence penalty: -2.4pt (ML 26pt higher)—
Risk Factors

No risk factors identified.

Sector Peer Comparison(Communication Services — Rank #53 of 60 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
WBD22.4147.3-4.8%-28.8%$69.4B
GOOGL82.828.315.1%32.8%$3.7T
EA75.175.1-1.3%15.0%$50.2B
MTCH74.512.83.4%15.8%$7.3B
META72.027.222.2%30.1%$1.6T
TIGO69.810.12.5%4.4%$11.0B
BZ65.521.923.6%21.5%$8.1B
NXST65.214.49.6%13.4%$7.0B
SIRI63.69.5-1.6%9.4%$7.2B
CMCSA63.65.9-0.0%16.2%$115.0B
JOYY60.91.9-1.3%83.2%$3.3B
EVER60.610.473.7%8.4%$566M
NFLX59.630.415.9%24.3%$326.1B
TMUS59.322.68.5%12.4%$245.5B
NWS56.712.62.4%12.2%$14.7B
WMG56.451.74.4%5.4%$15.4B
Sector Average43.5120.615.8%-116.3%—

Market Sentimentvia FMP

Analyst Consensus
Hold31 analysts
Buy: 14Hold: 17
Price Target
$26consensus
Low $16Median $28High $31
-11.5% to consensus target

Company Overviewvia FMP

Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. The Studios segment produces and releases feature films for initial exhibition in theaters; produces and licenses television programs to its networks and third parties and direct-to-consumer services; distributes films and television programs to various third parties and internal television; and offers streaming services and distribution through the home entertainment market, themed experience licensing, and interactive gaming. The Network segment comprises domestic and international television networks. The DTC segment offers premium pay-tv and streaming services. In addition, the company offers portfolio of content, brands, and franchises across television, film, streaming, and gaming under the Warner Bros. Motion Picture Group, Warner Bros. Television Group, DC, HBO, HBO Max, Max, Discovery Channel, discovery+, CNN, HGTV, Food Network, TNT Sports, TBS, TLC, OWN, Warner Bros. Games, Batman, Superman, Wonder Woman, Harry Potter, Looney Tunes, Hanna-Barbera, Game of Thrones, and The Lord of the Rings brands. Further, it provides content through distribution platforms, including linear network, free-to-air, and broadcast television; authenticated GO applications, digital distribution arrangements, content licensing arrangements, and direct-to-consumer subscription products. Warner Bros. Discovery, Inc. was incorporated in 2008 and is headquartered in New York, New York.

CEO
David Zaslav
Employees
35,000
Beta
1.62
Industry
Entertainment
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
73.6
Overbought
Trend
Bullish
10-day vs 50-day MA
From 52W High
-3.7%
High: $30
From 52W Low
+284.3%
Low: $7.52
Moving Averages
10-Day
$28.60
Above
20-Day
$28.00
Above
50-Day
$28.40
Above
200-Day
$18.80
Above
60-Day Support
$23.64
60-Day Resistance
$30
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 2 — AdvancingScore: 80/100

Stock is in an uptrend above the 200-day moving average. This is the stage where institutional accumulation typically occurs. The 50-day SMA provides support.

Favorable technical position; 50-day SMA acts as support
Price vs 200 SMA
+53.7%
200 SMA Slope (60d)
+41.2%
Rising
Volume Ratio
0.71x
10d avg vs 50d avg
Days in Stage
100
Confidence: 90%
Key Reversal Detected (2026-02-19)Recent Gap Up

Financial Statementslast 4 quarters via FMP

MetricQ3 2025Q2 2025Q1 2025Q4 2024
Revenue$9.0B$9.8B$9.0B$10.0B
Gross Profit$4.5B$3.8B$3.8B$4.5B
Operating Income$611M$-185M$-37M$162M
Net Income$-148M$1.6B$-453M$-494M
EPS (Diluted)$-0.06$0.63$-0.18$-0.20
Gross Margin49.5%39.2%42.9%44.9%
Operating Margin6.8%-1.9%-0.4%1.6%
Net Margin-1.6%16.1%-5.0%-4.9%

Why This Stock

Communication ServicesValuation below sector median (P/E 147.3)

Tradability FilterGrade A — 100/100Score impact: -15.9pt

Volume
100
41.3M avg/day
Dollar Vol
100
$1.2B/day
Float
100
2.3B shares
Mkt Cap
100
$69.4B
Range
100
299% spread
Composite Liquidity Score100/100
FDCBA

Multi-Year Range Analysis

Sideways: 0/100
YearLowHighRangeStatus
2021$21.66$78.14113.2%Wide
2022$8.82$31.55112.6%Wide
2023$9.27$16.3455.2%Wide
2024$6.64$12.7062.7%Wide
2025$7.52$30.00119.8%Wide
3-Year Range
127.5%
Narrow Years
0 / 5
Sideways Penalty
None

Growth Projection Adjustment

0.7x dampening
slight revenue decline

Growth estimates have been dampened based on technical and fundamental signals. This is a post-hoc adjustment to prevent overly optimistic projections for stocks showing declining momentum or deteriorating fundamentals.

Free Float
94.6%
Outstanding Shares
2.5B
Bid-Ask Spread
299.0%
Institutional Tradable
Yes

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.