WEBTOON Entertainment earns “Strong Buy” rating after upward trend in earnings estimates

This article was initially published on K-Comics Beat

WEBTOON Entertainment (NASDAQ: WBTN), the global online storytelling platform behind LINE Webtoon and Wattpad, just received a major nod of confidence from Zacks Investment Research. The company’s stock has been upgraded to a Zacks Rank #1 (Strong Buy) following a steady rise in earnings estimates—signaling positive momentum for investors and the entertainment tech sector alike.

The upgrade reflects optimism around WEBTOON’s earnings outlook, a key factor that often drives stock price growth. Zacks’ ranking system focuses on how analysts’ earnings projections evolve over time—and in WEBTOON’s case, they’ve been trending upward. Over the past three months, the Zacks Consensus Estimate for 2025 earnings jumped by nearly 57%, underscoring renewed confidence in the company’s performance.

WEBTOON Entertainment is expected to report $0.24 earnings per share (EPS) for the fiscal year ending December 2025, matching its previous year’s performance but hinting at long-term stability following its recent IPO. Analysts see this as a sign that the company’s global expansion strategy—including original content, partnerships, and film/TV adaptations—may be starting to pay off.

Zacks’ rating system, known for its data-driven approach, tracks over 4,000 stocks and places only the top 5% in the “Strong Buy” category. This latest ranking puts Webtoon among an elite group of companies expected to outperform the market in the near term.

Founded in 2005 under Naver Corporation, WEBTOON Entertainment has rapidly grown into a major player in digital storytelling. Its portfolio includes hit titles like Lore Olympus, Omniscient Reader, and Sweet Home, as well as adaptations streaming on Netflix and other platforms.

With the Zacks upgrade highlighting improving fundamentals, industry watchers will be keeping an eye on how WEBTOON continues to bridge the gap between comics and mainstream entertainment—and whether this new investor confidence translates to continued growth across its global content ecosystem.

Source: Yahoo! Finance

Featured Image: Burak The Weekender/Pexels