Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Walt Disney (DIS - Free Report) closed at $120.13, marking a -0.92% move from the previous day. This move lagged the S&P 500's daily gain of 1.23%. Meanwhile, the Dow gained 1.6%, and the Nasdaq, a tech-heavy index, added 0.42%.

Heading into today, shares of the entertainment company had lost 1.67% over the past month, outpacing the Consumer Discretionary sector's loss of 2.87% and the S&P 500's loss of 2.51% in that time.

Investors will be hoping for strength from DIS as it approaches its next earnings release, which is expected to be November 12, 2020. In that report, analysts expect DIS to post earnings of -$0.62 per share. This would mark a year-over-year decline of 157.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.34 billion, down 24.94% from the year-ago period.

Investors might also notice recent changes to analyst estimates for DIS. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 3.59% lower within the past month. DIS currently has a Zacks Rank of #4 (Sell).

Investors should also note DIS's current valuation metrics, including its Forward P/E ratio of 41.07. For comparison, its industry has an average Forward P/E of 29.44, which means DIS is trading at a premium to the group.

It is also worth noting that DIS currently has a PEG ratio of 6.13. 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 industry currently had an average PEG ratio of 6.13 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 20% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Walt Disney Company (DIS) - free report >>

Published in