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Walt Disney (DIS) Outperforms Broader Market: What You Need to Know

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In the latest close session, Walt Disney (DIS - Free Report) was up +1.12% at $114.17. The stock's change was more than the S&P 500's daily gain of 0.01%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.44%.

The entertainment company's stock has climbed by 3.75% in the past month, exceeding the Consumer Discretionary sector's gain of 0.47% and the S&P 500's gain of 0.86%.

Analysts and investors alike will be keeping a close eye on the performance of Walt Disney in its upcoming earnings disclosure. The company is expected to report EPS of $1.56, down 11.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $26.04 billion, up 5.47% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.6 per share and revenue of $101.2 billion, indicating changes of +11.3% and +7.17%, respectively, compared to the previous year.

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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. Currently, Walt Disney is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, Walt Disney is presently trading at a Forward P/E ratio of 17.11. This denotes a premium relative to the industry average Forward P/E of 16.86.

It is also worth noting that DIS currently has a PEG ratio of 1.57. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. DIS's industry had an average PEG ratio of 0.97 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 86, putting it in the top 36% 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.

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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