Back to top

Image: Bigstock

Walt Disney (DIS) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, Walt Disney (DIS - Free Report) closed at $175.86, marking a -1.3% move from the previous day. This change lagged the S&P 500's 0.2% loss on the day.

Prior to today's trading, shares of the entertainment company had gained 4.76% over the past month. This has outpaced the Consumer Discretionary sector's gain of 1.59% and the S&P 500's gain of 2.11% in that time.

DIS will be looking to display strength as it nears its next earnings release. In that report, analysts expect DIS to post earnings of $0.57 per share. This would mark year-over-year growth of 612.5%. Meanwhile, our latest consensus estimate is calling for revenue of $16.89 billion, up 43.39% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.28 per share and revenue of $67.6 billion, which would represent changes of +12.87% and +3.44%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for DIS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 2.87% higher. DIS is currently a Zacks Rank #3 (Hold).

Digging into valuation, DIS currently has a Forward P/E ratio of 78.25. This represents a premium compared to its industry's average Forward P/E of 48.22.

Meanwhile, DIS's PEG ratio is currently 3.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Media Conglomerates was holding an average PEG ratio of 3.05 at yesterday's closing price.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


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


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

Published in