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Walt Disney (DIS) Gains As Market Dips: What You Should Know

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In the latest trading session, Walt Disney (DIS - Free Report) closed at $106, marking a +0.29% move from the previous day. This change outpaced the S&P 500's 0.07% loss on the day. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq lost 3.22%.

Prior to today's trading, shares of the entertainment company had gained 20.09% over the past month. This has outpaced the Consumer Discretionary sector's gain of 13.63% and the S&P 500's gain of 4.64% 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 February 8, 2023. The company is expected to report EPS of $0.69, down 34.91% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $23.33 billion, up 6.93% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.97 per share and revenue of $90.8 billion, which would represent changes of +12.46% and +9.76%, respectively, from the prior 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.57% lower. Walt Disney is currently a Zacks Rank #4 (Sell).

Digging into valuation, Walt Disney currently has a Forward P/E ratio of 26.64. Its industry sports an average Forward P/E of 22.52, so we one might conclude that Walt Disney is trading at a premium comparatively.

Also, we should mention that DIS has a PEG ratio of 2.21. 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 1.31 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 9% 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.

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