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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 at $113.50 in the latest trading session, marking a +1.68% move from the prior day. This move outpaced the S&P 500's daily gain of 0.57%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 0.11%.

Prior to today's trading, shares of the entertainment company had lost 18.52% over the past month. This has lagged the Consumer Discretionary sector's loss of 16.66% and the S&P 500's loss of 10.81% in that time.

Wall Street will be looking for positivity from Walt Disney as it approaches its next earnings report date. This is expected to be May 11, 2022. The company is expected to report EPS of $1.20, up 51.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.25 billion, up 29.73% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.49 per share and revenue of $84.98 billion. These totals would mark changes of +96.07% and +26.05%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Walt Disney. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 0.43% higher. Walt Disney currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Walt Disney has a Forward P/E ratio of 24.87 right now. For comparison, its industry has an average Forward P/E of 21.67, which means Walt Disney is trading at a premium to the group.

Investors should also note that DIS has a PEG ratio of 1.09 right now. 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. Media Conglomerates stocks are, on average, holding a PEG ratio of 1.41 based on yesterday's closing prices.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% 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.

To follow DIS in the coming trading sessions, be sure to utilize Zacks.com.


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