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Is World Wrestling Entertainment (NYSE:WWE) suited for growth investing?

By Mill Chart

Last update: Sep 18, 2023

In this article we will dive into World Wrestling Entertainment (NYSE:WWE) as a possible candidate for growth investing. Investors should always do their own research, but we noticed World Wrestling Entertainment showing up in our CANSLIM growth screen, which makes it worth to investigate a bit more.

What matters for canslim investors.

  • World Wrestling Entertainment has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 54.24% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
  • World Wrestling Entertainment has experienced 25.06% q2q revenue growth, indicating a significant sales increase.
  • World Wrestling Entertainment has achieved 44.42% growth in EPS over the past 3 years, reflecting a sustained improvement in earnings performance.
  • The Return on Equity (ROE) of World Wrestling Entertainment stands at 18.6%, reflecting the company's strong profitability and effective utilization of shareholder equity. This metric signifies the company's ability to generate returns for its investors.
  • The Relative Strength (RS) of World Wrestling Entertainment has consistently been strong, with a current 91.23 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength. World Wrestling Entertainment demonstrates promising potential for sustained price momentum.
  • With a Debt-to-Equity ratio at 0.43, World Wrestling Entertainment showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
  • World Wrestling Entertainment demonstrates a balanced ownership structure, with institutional shareholders at 68.82%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.

Zooming in on the technicals.

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Taking everything into account, WWE scores 3 out of 10 in our technical rating. Although WWE is scoring some points because its good overall performance in the market in the past year, recent evolutions are not that positive. Both the medium and short term picture give negative signs.

  • When comparing the yearly performance of all stocks, we notice that WWE is one of the better performing stocks in the market, outperforming 91% of all stocks. On top of that, WWE also shows a nice and consistent pattern of rising prices.
  • WWE is one of the better performing stocks in the Entertainment industry, it outperforms 91% of 75 stocks in the same industry.
  • The long term trend is neutral, but the short term trend is negative. Better to stay away from this!
  • WWE is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so WWE is lagging the market slightly.
  • Volume is considerably higher in the last couple of days.

For an up to date full technical analysis you can check the technical report of WWE

Zooming in on the fundamentals.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Taking everything into account, WWE scores 7 out of 10 in our fundamental rating. WWE was compared to 75 industry peers in the Entertainment industry. Both the health and profitability get an excellent rating, making WWE a very profitable company, without any liquidiy or solvency issues. WWE is not valued too expensively and it also shows a decent growth rate. With these ratings, WWE could be worth investigating further for quality investing!.

Check the latest full fundamental report of WWE for a complete fundamental analysis.

More ideas for growth investing can be found on ChartMill in our CANSLIM screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.