Warner Bros Discovery Inc (NASDAQ:WBD) stock was last seen 1% higher to trade at $10.62, looking to close out the month and quarter with solid gain. On a year-to-date basis, WBD is underperforming, down 6.2% against a 23.7% gain in 2024 for the S&P 500 Index (SPX). This underperformance may present the perfect buying opportunity, however, as the equity tends to outperform in January.
Warner Bros Discovery stock holds a spot on Schaeffer’s Senior Quantitative Analyst Rocky White list of the 25 best SPX stocks to own next month. Per White’s data, WBD averaged a 10.8% return in January — the best average return on the list — and finished the month higher in seven of the last 10 years. A comparable move from its current perch would place the shares above $11.75, or back near their early December annual highs.
An unwinding of pessimism from analysts could benefit the security. Of the 25 in coverage, 14 recommend a tepid “hold,” leaving room for covering brokerages to upgrade the equity.
