WBD Consolidates Near $30 as Momentum Cools

$Warner Bros. Discovery(WBD)$

WBD Consolidates at $29.23, Eyeing Yearly High Near $30

Latest Close Data:

Closed at $29.23 on 12/26, up a modest 0.27% but trading just $0.77 below its 52-week high of $30.00.

Core Market Drivers:

Trading was quiet with no major company-specific news, suggesting price action was driven by broader market sentiment and positioning ahead of the year-end.

The stock continues to digest its significant run-up from yearly lows near $7.52.

Technical Analysis:

The latest MACD (12,26,9) shows DIF at 1.575 and DEA at 1.659, with the MACD histogram negative at -0.168, indicating a potential loss of short-term momentum.

However, RSI(6) at 67.88 and RSI(12) at 69.68 are in bullish territory but not yet overbought, suggesting room for further upside if buying pressure resumes.

Volume ratio of 0.43 indicates below-average activity, typical for consolidation.

Key Price Levels:

Primary Support: $27.81 (recent swing low)
Strong Resistance: $29.51 (immediate hurdle) & $30.00 (52-week high/psychological barrier)
Immediate Pivot: $29.15 (yesterday's close)

Valuation Perspective:

The stock trades at a high TTM P/E of 150.6, reflecting its recent profitability turnaround.

The forward P/E of 80.3 is significantly above its historical average of -20.7, indicating high growth expectations are priced in.

Analyst Targets:

Sentiment is cautiously optimistic. Among 22 analysts, consensus leans "Hold" with 3 Strong Buy, 7 Buy, 11 Hold, and 1 Underperform ratings.

The average price target is $27.66, slightly below the current price, with a range from $20 to $35.

Weekly Outlook:

Expect consolidation between $29.00 and $29.50 in the near term. A decisive break above $30.00 could target the $31-$32 range.

Conversely, a drop below the $27.81 support could see a test of the $27.00 level.

Risk Disclaimer:

This analysis is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal. Conduct your own research before making any investment decisions.

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.