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

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In the latest trading session, Walt Disney (DIS - Free Report) closed at $156.60, marking a -0.78% move from the previous day. This change lagged the S&P 500's 0.14% loss on the day. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.02%.

Heading into today, shares of the entertainment company had gained 3.35% over the past month, outpacing the Consumer Discretionary sector's loss of 3.63% and the S&P 500's loss of 0.13% in that time.

Walt Disney will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2022. In that report, analysts expect Walt Disney to post earnings of $0.62 per share. This would mark year-over-year growth of 93.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.11 billion, up 29.91% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.22 per share and revenue of $84.03 billion. These totals would mark changes of +84.28% and +24.65%, respectively, from last year.

Any recent changes to analyst estimates for Walt Disney should also be noted by investors. 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.

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 1.51% lower within the past month. Walt Disney currently has a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Walt Disney has a Forward P/E ratio of 37.41 right now. Its industry sports an average Forward P/E of 29.4, so we one might conclude that Walt Disney is trading at a premium comparatively.

Investors should also note that DIS has a PEG ratio of 1.65 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 1.65 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 247, putting it in the bottom 4% 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.


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