Discovery stock: buy or sell?

DISCB stock price: $32.62 8.19% At close on May 17th, 2019

Updated on:
May 17th, 2019

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Discovery shares crossed up the SMA line of 200 days today and closed at $32.62, boosted a 8.19%. On May 14th DISCB collapsed a frightening -25.90%.

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?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Discovery stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Discovery stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't detect any rating for DISCB stock for the last 30 days.

Discovery stock analysis

Daily outlook

Discovery broke up the SMA line of 200 days today and closed at $32.62, boosted a 8.19%.

, DISCB hit a new all time high, pushing higher than tops. Check different trading setups that use ATHs as triggers. Discovery shares broke up the simple moving average line of 200 days today and closed at $32.62, boosted a 8.19%. DISCB is retaking the upward trend marking a new rising bottom heading to break out over $40.16.

DISCB stock chart (daily)

Weekly outlook

After boosting an extraordinary 13.40% in a week by mid March, Discovery closed this week at $32.62 and collapsed a spooky -6.80%.

Not so far away is the last price record Discovery marked early April, but since then it dropped a 33.22%. Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $40.16 resistance. Since mid June 2018 when DISCB stock price broke up the SMA40w line, it gained $5.17 (18.83%). Early April, SMA20w and SMA40w crossed up triggering a rise of 0.99%.

DISCB stock chart (weekly)

Discovery stock price history

Discovery stock went public on November 10th, 2005 with a price of $7.361. Since then, DISCB stock grew a 343.20%, with an average of 26.40% per year. If you had invested right after DISCB's IPO a $1,000 in Discovery stock in 2005, it would worth $3,432.00 today.

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

Discovery stock historical price chart

DISCB stock reached all-time highs with a price of $48.85.

Discovery stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' DISCB stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we have not detected any price forecast for Discovery stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since February, when Discovery presented its last earnings report, it jumped a beatiful 7.62%. As soon as we get its posted EPS from the earnings report, we will extend this review.
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

Compared to 2017, last anual sales report draw a dazzling gain of 53.54% to $10,553.00 million USD. Similarly, its profit margin (compared to sales) rocketed to 5.82%, that is $614.00 million.

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 reported $2,809.00 M in revenues for 2018-Q4, a 8.37% up compared to previous quarter. Reported quarter earnings marked $273.00 million 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 sales to same quarter last year, Discovery sales marked an astounding increase and skyrocketed 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

When you are planning to buy a company, it's always worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Discovery, 95.08% of all outstanding shares are owned by its staff.

In case of Discovery stock, 0.52% 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 context understanding, the following table shows ownership data compared to other related companies:

DISCBAMCXCBSCMCSADIS
Market cap$212.4 M$2.5 B$17.2 B$196.1 B$241.4 B
Total shares6.5 M45.3 M352.0 M4,530.0 M1,800.0 M
Float shares501.5 M43.1 M333.3 M4,500.0 M1,800.0 M
  - Institutional holdings (%)0.5%113.0%0.0%84.7%54.8%
  - Insider holdings (%)95.1%3.7%7.8%0.7%0.2%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Discovery summary

Friday, May 17th, 2019
Open$29.71
Close$32.62
Day range$29.71 - $32.62
Previous close$30.15
Session gain8.19%
Average true range$6.37
50d mov avg$30.02
100d mov avg$31.30
200d mov avg$30.70
Daily patternlb02a
Weekly pattern lb02a

Discovery performance

To better understand Discovery performance you must becnhmark its gains with other related stocks in same sector or industry. In the following table, we compare Discovery performance to AMC Networks, CBS, Comcast, Walt Disney and Viacom:
Stock3m6m12m
DISCBDiscovery0.99%6.95%-1.12%
AMCXAMC Networks-13.27%-5.00%-6.82%
CBS -5.01%-8.61%-2.67%
CMCSAComcast12.71%17.03%39.38%
DISWalt Disney16.35%20.56%33.29%
VIABViacom0.03%-5.29%8.37%

Discovery competitors

We selected a few stocks to conform a list of Discovery competitors to check if you are interested in investing in DISCB:

Latest Discovery stock news