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Walt Disney (DIS) Exceeds Market Returns: Some Facts to Consider

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The most recent trading session ended with Walt Disney (DIS - Free Report) standing at $98.76, reflecting a +0.88% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.49%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq increased by 1.22%.

Heading into today, shares of the entertainment company had lost 10.2% over the past month, lagging the Consumer Discretionary sector's loss of 8.83% and the S&P 500's loss of 8.15% in that time.

Market participants will be closely following the financial results of Walt Disney in its upcoming release. The company is forecasted to report an EPS of $1.19, showcasing a 1.65% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $23.17 billion, reflecting a 4.91% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $5.48 per share and a revenue of $94.7 billion, demonstrating changes of +10.26% and +3.66%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Walt Disney. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. As of now, Walt Disney holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Walt Disney is holding a Forward P/E ratio of 17.86. This represents a discount compared to its industry's average Forward P/E of 23.55.

One should further note that DIS currently holds a PEG ratio of 1.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Media Conglomerates stocks are, on average, holding a PEG ratio of 2.01 based on yesterday's closing prices.

The Media Conglomerates industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 168, this industry ranks in the bottom 34% of all industries, numbering over 250.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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