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Walt Disney (DIS) Dips More Than Broader Markets: What You Should Know
Walt Disney (DIS - Free Report) closed at $107.59 in the latest trading session, marking a -1.78% move from the prior day. This change lagged the S&P 500's daily loss of 1.3%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 5.51%.
Heading into today, shares of the entertainment company had gained 26.08% over the past month, outpacing the Consumer Discretionary sector's gain of 15.99% and the S&P 500's gain of 6.41% in that time.
Investors will be hoping for strength from Walt Disney as it approaches its next earnings release, which is expected to be February 8, 2023. On that day, Walt Disney is projected to report earnings of $0.69 per share, which would represent a year-over-year decline of 34.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.33 billion, up 6.93% from the year-ago period.
DIS's full-year Zacks Consensus Estimates are calling for earnings of $3.97 per share and revenue of $90.8 billion. These results would represent year-over-year changes of +12.46% and +9.76%, respectively.
Any recent changes to analyst estimates for Walt Disney should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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.
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 2.12% lower within the past month. Walt Disney currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, Walt Disney is holding a Forward P/E ratio of 27.61. This valuation marks a premium compared to its industry's average Forward P/E of 23.5.
Investors should also note that DIS has a PEG ratio of 2.29 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. The Media Conglomerates was holding an average PEG ratio of 1.38 at yesterday's closing price.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 23% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.