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Why Walt Disney (DIS) Outpaced the Stock Market Today

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Walt Disney (DIS - Free Report) closed the most recent trading day at $114.78, moving +1.15% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.26%. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.48%.

Heading into today, shares of the entertainment company had lost 4.15% over the past month, lagging the Consumer Discretionary sector's loss of 0.21% and the S&P 500's gain of 2.87%.

Analysts and investors alike will be keeping a close eye on the performance of Walt Disney in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.03, signifying a 9.65% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.95 billion, up 1.65% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.86 per share and revenue of $94.91 billion, which would represent changes of +17.91% and +3.88%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Walt Disney. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.08% fall in the Zacks Consensus EPS estimate. Walt Disney is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Walt Disney is holding a Forward P/E ratio of 19.35. This valuation marks a discount compared to its industry average Forward P/E of 22.61.

We can additionally observe that DIS currently boasts a PEG ratio of 1.64. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Media Conglomerates industry had an average PEG ratio of 2.49.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 35% of all 250+ industries.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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