Walt Disney (DIS - Free Report) closed the most recent trading day at $131.75, moving -1.1% from the previous trading session. This move lagged the S&P 500's daily gain of 0.05%. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq lost 0.61%.
Heading into today, shares of the entertainment company had gained 1.73% over the past month, outpacing the Consumer Discretionary sector's gain of 1.58% and the S&P 500's loss of 0.52% in that time.
Investors will be hoping for strength from DIS as it approaches its next earnings release. The company is expected to report EPS of -$0.53, down 149.53% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.58 billion, down 23.65% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.70 per share and revenue of $65.41 billion. These totals would mark changes of -70.54% and -5.98%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for DIS. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.2% lower. DIS currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, DIS is holding a Forward P/E ratio of 78.36. This represents a premium compared to its industry's average Forward P/E of 48.16.
We can also see that DIS currently has a PEG ratio of 11.71. 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 11.71 at yesterday's closing price.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 17% 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.
To follow DIS in the coming trading sessions, be sure to utilize Zacks.com.