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Walt Disney (DIS) Dips More Than Broader Markets: What You Should Know
Walt Disney (DIS - Free Report) closed the most recent trading day at $94.90, moving -1.7% from the previous trading session. This change lagged the S&P 500's daily loss of 1.65%. Elsewhere, the Dow lost 1.63%, while the tech-heavy Nasdaq lost 6.65%.
Heading into today, shares of the entertainment company had lost 5.44% over the past month, lagging the Consumer Discretionary sector's loss of 2.7% and the S&P 500's gain of 0.3% in that time.
Investors will be hoping for strength from Walt Disney as it approaches its next earnings release. The company is expected to report EPS of $0.94, down 12.96% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.1 billion, up 14.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.98 per share and revenue of $90.27 billion. These totals would mark changes of +12.75% and +9.13%, respectively, from last year.
Any recent changes to analyst estimates for Walt Disney should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.76% higher. Walt Disney is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Walt Disney is currently trading at a Forward P/E ratio of 24.26. For comparison, its industry has an average Forward P/E of 28.37, which means Walt Disney is trading at a discount to the group.
We can also see that DIS currently has a PEG ratio of 2.37. 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 2.37 at yesterday's closing price.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 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.