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Walt Disney (DIS) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest trading session, Walt Disney (DIS - Free Report) closed at $109.88, marking a -1.64% move from the previous day. This move lagged the S&P 500's daily loss of 0.63%. Elsewhere, the Dow saw a downswing of 0.65%, while the tech-heavy Nasdaq depreciated by 0.47%.

The stock of entertainment company has fallen by 3.78% in the past month, lagging the Consumer Discretionary sector's loss of 3.5% and the S&P 500's gain of 0.92%.

Analysts and investors alike will be keeping a close eye on the performance of Walt Disney in its upcoming earnings disclosure. The company's earnings report is set to go public on November 13, 2025. On that day, Walt Disney is projected to report earnings of $1.03 per share, which would represent a year-over-year decline of 9.65%. Meanwhile, our latest consensus estimate is calling for revenue of $22.92 billion, up 1.51% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $5.87 per share and a revenue of $94.84 billion, demonstrating changes of +18.11% and 0%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Walt Disney. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% lower. Walt Disney is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Walt Disney is at present trading with a Forward P/E ratio of 17.24. This valuation marks a discount compared to its industry average Forward P/E of 18.11.

Also, we should mention that DIS has a PEG ratio of 1.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Media Conglomerates industry was having an average PEG ratio of 2.6.

The Media Conglomerates industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 187, placing it within the bottom 25% of over 250 industries.

The Zacks Industry Rank is ordered 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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