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

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Walt Disney (DIS - Free Report) closed the most recent trading day at $176.25, moving +1.5% from the previous trading session. This change outpaced the S&P 500's 1.21% gain on the day.

Heading into today, shares of the entertainment company had lost 2.61% over the past month, lagging the Consumer Discretionary sector's gain of 0.69% and the S&P 500's loss of 0.9% in that time.

Investors will be hoping for strength from DIS as it approaches its next earnings release. On that day, DIS is projected to report earnings of $0.51 per share, which would represent year-over-year growth of 355%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.88 billion, up 28.39% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.44 per share and revenue of $67.61 billion, which would represent changes of +20.79% and +3.45%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for DIS. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.21% lower. DIS is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note DIS's current valuation metrics, including its Forward P/E ratio of 71.11. This valuation marks a premium compared to its industry's average Forward P/E of 37.85.

It is also worth noting that DIS currently has a PEG ratio of 3.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Media Conglomerates was holding an average PEG ratio of 2.55 at yesterday's closing price.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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