WMG Stock Analysis: Buy, Sell, or Hold?
WMG - Warner Music Group Corp. Class A Common Stock
$34.11
0.68 (2.03%)
▲
5d:
+3.55%
30d:
+12.76%
90d:
+15.59%
HOLD
MODERATE Confidence
Analysis Updated: May 18, 2026 12:00 AM ET
Earnings: May 12, 2026
0d
Get Alerted When WMG Hits Your Target Price
Join 10,000+ traders who never miss a move
You're in! Check your email to confirm and set your target price.
100% Free
No spam, ever
Unsubscribe anytime
Interactive Price Chart (1 Month)
Loading chart...
Loading historical data...
Bottom Line:
📊 HOLD: WMG is fairly valued with market pricing in 0.5% annual growth. Fine to hold or accumulate slowly on dips.
📊 HOLD: WMG is fairly valued with market pricing in 0.5% annual growth. Fine to hold or accumulate slowly on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$42.56
Based on 5.3% avg growth
INTRINSIC VALUE TODAY
$26.43
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 16.9x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: WMG is currently trading at $34.11, which is considered extended relative to its 30-day fair value range of $28.11 to $32.09. The stock's valuation (Forward PE: 17.2) is in line with its historical norms (16.9). At these levels, the market is pricing in 0.5% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, WMG is in a strong uptrend. The price is approaching resistance at $34.13. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: WMG has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $38.12 (+14.0%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, WMG is in a strong uptrend. The price is approaching resistance at $34.13. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: WMG has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $38.12 (+14.0%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$28.11 -
$32.09
Company Quality Score
60/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
55.7%
All Signals
- BEARISH: Price extended above range (+6.3% above its trading range)
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($38.12)
- NEUTRAL: Market pricing in 0.5% annual earnings growth - fairly valued
Trading Range Analysis
30-Day Trading Range
$28.11 -
$32.09
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$28.09
Resistance Level
$34.13
Current Trend
Strong Uptrend
Technical data as of
May 18, 2026
Fundamental Context
Forward P/E (Next Year Est.)
17.18
Wall Street Target
$38.12
(+14.0%)
Revenue Growth (YoY)
16.7%
Earnings Growth (YoY)
393.1%
Profit Margin
6.3%
Valuation Premium vs History
+0.5% premium
PE vs Historical
17.2 vs 16.9
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+0.5%
(market-implied from PE analysis)
1-Year Target
$33.60
(+1%)
2-Year Target
$33.77
(+1%)
3-Year Target
$33.93
(+2%)
3-Yr Target (if PE normalizes)
(PE: 17→17)
PE COMPRESSION
$33.38
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.1, Growth: 6.6%)
$51.98
(+56%)
Base:
(SPY PE: 17.2, Growth: 6.6%)
$40.47
(+21%)
Bear:
(PE: 14.6, Growth: 6.6%)
$34.40
(+3%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (39x PE), but valuation improves significantly next year (17x PE) as earnings recover.
Trailing PE: 39.06 | Current EPS (TTM): $0.84
Bull Case
$72.18
(+116%)
Analyst growth 100.0%, PE expands to 43.0
Base Case
$65.62
(+96%)
Market implied 100.0%, PE stable at 39.1
Bear Case
$22.31
(-33%)
Severe decline -20.0%, PE contracts to 33.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: May 18, 2026 3:44 PM ET
Data refreshes hourly during market hours. Next update: 4:44 PM
Data refreshes hourly during market hours. Next update: 4:44 PM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
|---|
Technical Signals Check
Is WMG showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
Top Rated Entertainment Stocks
Top-rated stocks in Entertainment by analyst ratings.
| Stock | Analyst Consensus | Analyst Target | Tradestie Score |
|---|---|---|---|
|
DIS
Walt Disney Company |
STRONG BUY
32 analysts |
$131 | 56 HOLD |
|
NFLX
Netflix Inc |
BUY
49 analysts |
$115 | 57 HOLD |
|
LYV
Live Nation Entertainmen… |
STRONG BUY
23 analysts |
$185 | 64 BUY |
|
ROKU
Roku Inc |
BUY
32 analysts |
$145 | 58 HOLD |
|
WBD
Warner Bros Discovery Inc |
BUY
27 analysts |
$30 | 59 HOLD |
