Entertainment company DISH Network Corporation (DISH) operates in two segments, Pay-TV and Wireless. On September 12, 2022, DISH announced a first-of-its-kind solution, National Linear Programmatic, which will work across DISH’s 7+ million households nationwide.

However, DISH recently witnessed unusual options activity. Over 2,000 put options were traded on October 13, indicating bearish investor sentiment.

DISH has lost 26.7% over the past month to close the last trading session at $13.53. It has lost 58.6% year-to-date and 68.2% over the past year.

Here is what could shape DISH’s performance in the near term:

Weak Financials

DISH’s total revenue came in at $4.21 billion for the second quarter ended June 30, 2022, down 6.2% year-over-year. Its operating income came in at $692.93 million, down 23.6% year-over-year.

Moreover, its net income came in at $522.83 million, down 22.1% year-over-year. The company’s EPS decreased 22.6% year-over-year to $0.82.

Unfavorable Analyst Expectations

DISH’s revenue is expected to decline 6.7% year-over-year to $4.15 billion for the quarter ending September 2022 and 6.8% year-over-year to $4.14 billion for the quarter ending December 2022. Moreover, its revenue is expected to decrease 7.8% year-over-year to $16.49 billion in 2022.

In addition, its EPS is expected to decrease 36.4% year-over-year to $0.56 for the quarter ending September 2022 and 40.7% year-over-year to $0.51 for the quarter ending December 2022. Also, its EPS is expected to fall 34% year-over-year to $2.50 in 2022. The stock missed EPS estimates in three of four trailing quarters.

Mixed Valuations

DISH’s forward EV/Sales of 1.68x is 11.3% lower than the industry average of 1.90x. Its forward Price/Sales of 0.42x is 62.3% lower than the industry average of 1.12x. However, its forward EV/EBITDA of 9.28x is 25.2% higher than the industry average of 7.41x.

POWR Ratings Reflect Bleak Prospects

DISH has an overall rating of D, equating to Sell in our proprietary POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

DISH has a D grade for Growth, consistent with its weak financials in the latest reported quarter.

It has a C grade for Stability, in sync with its 24-month beta of 1.31.

In the 9-stock Entertainment - TV & Internet Providers industry, DISH is ranked #8. The industry is rated D.

Click here for the additional POWR Ratings for DISH (Value, Momentum, Sentiment, and Quality).

View all the top stocks in the Entertainment - TV & Internet Providers industry here.

Bottom Line

DISH reported bleak financials in its latest reported quarter. Moreover, the stock closed its last trading session near its 52-week low of $12.55. Also, it is trading below its 50-day moving average of $16.92 and its 200-day moving average of $24.11, indicating a downtrend.

Given the grim outlook surrounding the stock, I think DISH might be best avoided now.

How Does DISH Network Corporation (DISH) Stack Up Against its Peers?

While DISH has an overall POWR Rating of D, one might consider looking at its industry peers, Comcast Corporation (CMCSA) and Charter Communications, Inc. (CHTR), which have an overall B (Buy) rating.

DISH shares were trading at $13.00 per share on Friday afternoon, down $0.44 (-3.27%). Year-to-date, DISH has declined -59.93%, versus a -23.70% rise in the benchmark S&P 500 index during the same period.

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.

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