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Not that cable television company Discovery Communications (NASDAQ:DISCA) isn’t viable, but at a trailing P/E of 31.9, it’s not nearly as viable as the market is pricing it to be.
But the future looks bright for DISCA, right? Yes, 2014’s estimated per share earnings of $4.24 translates into a forward-looking P/E of only 18.67.
Thing is, the company has fallen short of earnings estimates in three of the past four quarters. That doesn’t bode well for future results, and the one thing the market likes less than meeting weak targets is failing to meet an earnings target.