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Walt Disney (DIS) Gains As Market Dips: What You Should Know

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Walt Disney (DIS - Free Report) closed the most recent trading day at $117.08, moving +0.77% from the previous trading session. This change outpaced the S&P 500's 0.03% loss on the day. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Coming into today, shares of the entertainment company had gained 6.08% in the past month. In that same time, the Consumer Discretionary sector lost 3.07%, while the S&P 500 lost 3.08%.

Wall Street will be looking for positivity from DIS as it approaches its next earnings report date. This is expected to be November 8, 2018. On that day, DIS is projected to report earnings of $1.31 per share, which would represent year-over-year growth of 22.43%. Our most recent consensus estimate is calling for quarterly revenue of $13.81 billion, up 8.05% from the year-ago period.

Investors should also note any recent changes to analyst estimates for DIS. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. DIS is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, DIS currently has a Forward P/E ratio of 16.02. This valuation marks a premium compared to its industry's average Forward P/E of 11.72.

We can also see that DIS currently has a PEG ratio of 1.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Media Conglomerates was holding an average PEG ratio of 1.31 at yesterday's closing price.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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