Discovery stock: buy or sell?
May 14th, 2020
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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
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.
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%).
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 targetPredicting 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 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%.
|2013||$5,540 M||-||$1,070 M19.3%||-|
|2014||$6,265 M||13.09%||$1,139 M18.2%||6.45%|
|2015||$6,394 M||2.06%||$1,047 M16.4%||-8.08%|
|2016||$6,497 M||1.61%||$1,217 M18.7%||16.24%|
|2017||$6,873 M||5.79%||$-313.00 M-4.6%||-125.72%|
|2018||$10,553 M||53.54%||$614 M5.8%||-296.17%|
Quarterly financial resultsDiscovery 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%.
|2017-Q1||$1,620 M||-||$215 M13.3%||-|
|2017-Q2||$1,750 M||8.02%||$374 M21.4%||73.95%|
|2017-Q3||$1,651 M||-5.66%||$218 M13.2%||-41.71%|
|2017-Q4||$1,864 M||12.90%||$-1,144 M-61.4%||-624.77%|
|2018-Q1||$2,307 M||23.77%||$-2 M-0.1%||-99.83%|
|2018-Q2||$2,845 M||23.32%||$221 M7.8%||-11,150.00%|
|2018-Q3||$2,592 M||-8.89%||$122 M4.7%||-44.80%|
|2018-Q4||$2,809 M||8.37%||$273 M9.7%||123.77%|
Discovery ownershipChecking 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:
|Market cap||$250.7 M|
|Total shares||6.5 M|
|Float shares||468.6 M|
|- Institutional holdings (%)||12.8%|
|- Insider holdings (%)||95.1%|
|Shares in short selling||0.0%|
|Thursday, May 14th, 2020|
|Day range||$37.10 - $41.98|
|Average true range||$9.60|
|50d mov avg||$35.79|
|100d mov avg||$32.05|
|200d mov avg||$33.48|
Discovery performancePerformance 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 :
Discovery competitorsUnfortunately, 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
- InvestorPlace3 Big Stock Charts for Thursday: Discovery, AT&T and DISH NetworkJuly 25, 2019
- Seeking AlphaDiscovery Communications Is Severely UndervaluedJuly 15, 2019
- Seeking AlphaDiscovery Inc.: Content Is King, The King Is Dead, Long Live The KingJune 27, 2019
- InvestorPlace3 Big Stock Charts for Thursday: Discovery, Norfolk Southern and Bristol-Myers SquibbApril 25, 2019
- Seeking AlphaArtificial Intelligence In Precision Medicine And Drug Discovery: Insights From The Recent Annual 18th Bio-IT World ConferenceApril 24, 2019