Warner Music Group reported earnings growth ranging from 81% to an amazing 154% over the past three quarters. The company got a new chief executive to kick off 2023 too, as Robert Kyncl came aboard on Jan. 1. On Tuesday, the IBD Relative Strength (RS) Rating for Warner Music stock shot up 10 points, from 63 to 73.
The upwardly revised 73 RS Rating means Warner Music stock outperformed 73% of all stocks in terms of price appreciation over the past year. Market research reveals that the market's biggest winners, the best stocks to buy and watch, often have an RS Rating of at least 80 in the early stages of their moves. See if Warner Music Group can continue to show renewed price strength and clear that threshold.
Warner Music Stock Among Top 20% Overall
Additionally, Warner Music stock has a strong 81 Composite Rating, out of 99. And it boasts an outstanding 97 Earnings Per Share Rating based on those spectacular gains last year. In the same vein, its B SMR Rating (sales growth + profit margins + return on equity), on an A to E scale reflects impressive fundamentals. One yellow flag to keep an eye on is its D- Accumulation/Distribution Rating. The D- rating shows that institutional investors such as insurance funds and mutual funds are selling more shares than buying. Look for that to improve to a C or better rating.
Newly named CEO Kyncl previously was chief business officer at YouTube. Kyncl was with YouTube since 2010 and helped oversee the company's expansion including its streaming platform launch. At Warner Music he replaces former CEO Steve Cooper, who stayed on for the month of January to ensure a smooth transition. At the end of January Kyncl also assumed Cooper's seat on Warner Music's board of directors.
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Shares Climbed 48% Since October
Warner Music stock is trying to complete a consolidation with a 38.86 entry. See if it can clear the breakout price in volume at least 40% higher than normal. On Tuesday the stock dipped fractionally to a 31.98 close. It's up about 48% from a mid-October low 21.57.
Warner Music Group reported 86% EPS growth last quarter, to 80 cents per share. Revenue growth has not been as strong as earnings growth. Sales fell 8% last quarter to $1.49 billion. The prior three quarters its sales grew 10%, 7% and then 9%. The next quarterly numbers are expected on or around May 9.
The company earns the No. 8 rank among its peers in the Leisure-Services industry group. fitness company Life Time Group and fellow fitness company Xponential Fitness are among the group's highest-rated stocks. Xponential was the IBD 50 Stock Of The Day on Tuesday.
The exclusive Relative Strength Rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price performance over the trailing 52 weeks compares to all the other stocks in our database.
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