Should You Hold Discovery Communications, Inc. (NASDAQ:DISCA)


Discovery Communications, Inc. (NASDAQ:DISCA) closed its last session at $24.01. The stock traded within a range of $22.86 and $24.05. The company operates in the Consumer Cyclical sector with a market capitalization of 8.87 Million. Trading volume for Discovery Communications, Inc. was 7.53 Million in its previous trading session. Currently, Discovery Communications, Inc. (NASDAQ:DISCA) has an average volume of 6.51 Million.

Company Profile

Discovery Communications is the world’s #1 nonfiction media company reaching more than 1.8 billion cumulative subscribers in 209 countries and territories. Discovery is dedicated to satisfying curiosity through 149 worldwide television networks, led by Discovery Channel, TLC, Animal Planet, Science and Investigation Discovery, as well as U.S. joint venture networks OWN: Oprah Winfrey Network, The Hub and 3net, the first 24-hour 3D network. Discovery also is a leading provider of educational products and services to schools and owns and operates a diversified portfolio of digital media services, including Revision3.

Analyst Views

Discovery Communications, Inc. (NASDAQ:DISCA) received a Buy rating from 3 analysts. 1 analysts gave its stock an Outperform rating. 4 analysts say it’s a Hold while 0 analysts provided their expert opinion as Sell.

Discovery Communications, Inc. (NASDAQ:DISCA) touched its 1-Year High price of $30.25 on 04/20/17 and its 1-Year Low price of $15.99 on 11/15/17.

EPS & Financials

Discovery Communications, Inc. (NASDAQ:DISCA) reported its EPS in the last quarter as $0.43/Share lagging the analyst estimate of $0.54/Share by a difference of $-0.11. This showed a surprise of -20.4% in the last quarter earnings.

For the current quarter, 18 analysts are projecting a mean EPS of $0.43/share. According to their observations and findings, the stock could provide a high EPS of $0.61/share and a low EPS of $0.3/share.

Analysts believe that the company has the potential to earn average revenue of $1.77 Billion for the current quarter. According to their predictions high & low revenue estimates are 1.83 Billion and 1.7 Billion respectively.

Technical Analysis

By taking a look at the stock’s current statistics it can gauged that the stock candle is BULLISH with HIGH volatility. Discovery Communications, Inc. (NASDAQ:DISCA) has a 20-Day average volume of 6.8 Million. According to today’s trading volume Discovery Communications, Inc. is ABOVE its 20-Day Avg. volume with the stock showing ABOVE Abnormal volume in the past 150 days.

Moving average convergence divergence (MACD) shows that the stock is on a PRICE RELATIVITY trend. The trend for the past 10-days shows that the company was in BULLISH territory while an analysis of the last 40-Day trend shows a BULLISH signal. The 100-Day trend also shows a BEARISH trend as well.

The company currently has an insider ownership of 0.6 Percent and Institutional ownership of 0 Percent. The return on assets stands at 4.2%, Return on Equity currently is 13.6% and the Return on Investment value is 11.8%.

Discovery Communications, Inc. (NASDAQ:DISCA) gross margin percentage stands at 61.7% while its operating margin for the past trailing twelve month is 30.2 percent and its overall profit margin (ttm) is 11.1 Percent. The stock is currently moving above its 20-Day Simple Moving Average of 8.67% with a 50-Day Simple Moving Average of 21.91 percent. As of today, the company has a SMA200 (200-day simple moving average) of 2.39 Percent. The Stock has YTD (year to date) performance of 7.28 percent.

The TTM operating margin for the company stands at 30.2%. The return on invested capital is at 11.8%, which is good, compared to its peers. The Free Cash Flow or FCF margin is 5.6.

The company’s stock is currently moving with a +ve distance from the 200 day SMA of approximately 2.39%, and has a solid year to date (YTD) performance of 7.28% which means that the stock is constantly adding to its value from the previous fiscal year end price.