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Walt Disney (DIS) Gains But Lags Market: What You Should Know

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Walt Disney (DIS - Free Report) closed at $176.12 in the latest trading session, marking a +0.07% move from the prior day. This move lagged the S&P 500's daily gain of 0.23%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.43%.

Prior to today's trading, shares of the entertainment company had gained 1.18% over the past month. This has lagged the Consumer Discretionary sector's gain of 2.84% and the S&P 500's gain of 3.86% in that time.

DIS will be looking to display strength as it nears its next earnings release. On that day, DIS is projected to report earnings of -$0.34 per share, which would represent a year-over-year decline of 122.22%. Our most recent consensus estimate is calling for quarterly revenue of $15.68 billion, down 24.8% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.69 per share and revenue of $68.02 billion, which would represent changes of -16.34% and +4.08%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for DIS. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 14.02% lower within the past month. DIS is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that DIS has a Forward P/E ratio of 104.22 right now. Its industry sports an average Forward P/E of 60.04, so we one might conclude that DIS is trading at a premium comparatively.

Investors should also note that DIS has a PEG ratio of 5.07 right now. 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. DIS's industry had an average PEG ratio of 5.07 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 248, putting it in the bottom 3% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.


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