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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 $183.47, moving +0.07% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.91%.

Coming into today, shares of the entertainment company had gained 5.82% in the past month. In that same time, the Consumer Discretionary sector gained 0.91%, while the S&P 500 gained 0.01%.

Investors will be hoping for strength from DIS as it approaches its next earnings release. In that report, analysts expect DIS to post earnings of $0.51 per share. This would mark year-over-year growth of 355%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.89 billion, up 28.41% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.44 per share and revenue of $67.61 billion. These totals would mark changes of +20.79% and +3.46%, 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 1.26% lower within the past month. DIS is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that DIS has a Forward P/E ratio of 75.07 right now. For comparison, its industry has an average Forward P/E of 35.87, which means DIS is trading at a premium to the group.

Also, we should mention that DIS has a PEG ratio of 3.5. 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. DIS's industry had an average PEG ratio of 2.48 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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