Discovery stock: buy or sell?

DISCB stock price: $38.51 -5.01% At close on May 14th, 2020

Updated on:
May 14th, 2020

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Discovery shares collapsed -5.01% to $38.51 today.

Discovery Communications, Inc. operates as a media company worldwide. The company operates through U.S. Networks, International Networks, and Education and Other segments.

Should I buy Discovery stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Discovery stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean DISCB will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Discovery stock a buy?

Financial institutions and banks post stock ratings everyday. Unfortunately, we couldn't find any rating for DISCB stock for the last 30 days.

Discovery stock analysis

Daily outlook

Discovery shares collapsed -5.01% to $38.51 today.

On May/1, DISCB hit a new all time high, pushing higher than tops. Check different trading setups that use ATHs as triggers. Shares of Discovery closed today at $38.51 and collapsed a dreadful -5.01%. Since price and SMA200d lines crossed up on Apr 30th, DISCB climbed $9.26 (31.66%). From a daily outlook perspective, DISCB is drawing an uptrend of rising tops and rising bottoms. Since its last top on May 1st at $103.00, price slid and bounced up back from $39.05. Breaking down under $39.05 would cancel the current uptrend and it might slide further to test lower supports. Note that $103.00 might act as a resistance line. Trading the long side, we should wait to a new breakout over $103.00 to find the next buy point.

DISCB stock chart (daily)

Weekly outlook

Discovery shares plummed -11.21% this week, ending at $38.51. Late April DISCB climbed an astounding 41.35% in just one week.

Not so far away is the last all-time high Discovery marked late April, but since then it dropped a 62.61%. Since late April when DISCB stock price broke up the SMA40w line, it gained $12.31 (46.98%). Since SMA20d and SMA40w crossed up early April, DISCB price climbed $6.21 per share (19.23%).

DISCB stock chart (weekly)

Discovery stock price history

Discovery IPO was on November 10th, 2005 at $7.36 per share1. Since then, DISCB stock surged a 423.20%, with an average of 30.20% per year. If you had invested $1,000 in Discovery stock in 2005, it would worth $4,232.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Discovery stock historical price chart

DISCB stock reached all-time highs on May 1st with a price of $103.00.

Discovery stock price target

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we have not detected any price prediction for Discovery stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

, when Discovery posted its last earnings report, it climbed an exceptional 27.05%. As soon as we get its actual EPS from the earnings report, we will extend this report.
DISCB earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.35n/a
2017-Q2-n/a0.45n/a
2017-Q3-n/a0.27n/a
2017-Q42018-02-27n/a0.47n/a
2018-Q12018-05-08n/a0.53n/a
2018-Q22018-08-07n/a0.66n/a
2018-Q32018-11-08n/a0.52n/a
2018-Q42019-02-26n/a0.74n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Discovery annual sales skyrocketed an amazing 53.54% to $10,553.00 M dollars from $6,873.00 marked in 2017. When comparing 2018 vs 2017, in line, profit margin (that is, the net income divided by revenues) climbed a 10.37% to 5.82%.

DISCB annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$5,540 M-$1,070 M19.3%-
2014$6,265 M13.09%$1,139 M18.2%6.45%
2015$6,394 M2.06%$1,047 M16.4%-8.08%
2016$6,497 M1.61%$1,217 M18.7%16.24%
2017$6,873 M5.79%$-313.00 M-4.6%-125.72%
2018$10,553 M53.54%$614 M5.8%-296.17%

Quarterly financial results

Discovery posted $2,809.00 M in sales for 2018-Q4, a 8.37% up compared to previous quarter. Reported quarter earnings marked $273.00 M with a profit margin of 9.72%. Profit margin escalated a 5.01% compared to previous quarter when profit margin was 4.71%. When comparing turnover to same quarter last year, Discovery sales marked an outstanding gain and rocketed a 50.70%.
DISCB quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$1,620 M-$215 M13.3%-
2017-Q2$1,750 M8.02%$374 M21.4%73.95%
2017-Q3$1,651 M-5.66%$218 M13.2%-41.71%
2017-Q4$1,864 M12.90%$-1,144 M-61.4%-624.77%
2018-Q1$2,307 M23.77%$-2 M-0.1%-99.83%
2018-Q2$2,845 M23.32%$221 M7.8%-11,150.00%
2018-Q3$2,592 M-8.89%$122 M4.7%-44.80%
2018-Q4$2,809 M8.37%$273 M9.7%123.77%

Discovery ownership

Checking Discovery ownership structure gives valuable information about the company and its governance (insider ownership) or the amount of investors that are on the short side.

Discovery shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 95.08% of all shares.

In case of Discovery stock, 12.75% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for DISCB stock account 0.00%, no big difference from last month.

For a better understanding, the following table shows ownership data compared to other related stocks:

DISCB
Market cap$250.7 M
Total shares6.5 M
Float shares468.6 M
  - Institutional holdings (%)12.8%
  - Insider holdings (%)95.1%
Shares in short selling0.0%

Discovery summary

Thursday, May 14th, 2020
Open$43.00
Close$38.51
Day range$37.10 - $41.98
Previous close$40.54
Session gain-5.01%
Average true range$9.60
50d mov avg$35.79
100d mov avg$32.05
200d mov avg$33.48
Daily patternlb03a
Weekly pattern

Discovery performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare Discovery to :
Stock3m6m12m
DISCBDiscovery12.27%40.29%49.61%

Discovery competitors

Unfortunately, we could not find any public company that could be defined as Discovery competitor. This doesn't mean Discovery does not have any competitor in the market, it's just we could not detected it.

    Latest Discovery stock news