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Walt Disney (DIS) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest trading session, Walt Disney (DIS - Free Report) closed at $104.29, marking a -1.89% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.64%. Meanwhile, the Dow experienced a drop of 0.59%, and the technology-dominated Nasdaq saw a decrease of 0.59%.

Coming into today, shares of the entertainment company had gained 8.52% in the past month. In that same time, the Consumer Discretionary sector gained 7.49%, while the S&P 500 gained 9.33%.

The upcoming earnings release of Walt Disney will be of great interest to investors. The company's earnings report is expected on May 6, 2026. The company is forecasted to report an EPS of $1.49, showcasing a 2.76% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $25.03 billion, showing a 5.96% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.61 per share and revenue of $101.05 billion, indicating changes of +11.47% and +7.01%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Walt Disney. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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. Over the past month, there's been a 0.17% fall in the Zacks Consensus EPS estimate. Walt Disney currently has a Zacks Rank of #3 (Hold).

Investors should also note Walt Disney's current valuation metrics, including its Forward P/E ratio of 16.09. Its industry sports an average Forward P/E of 21.91, so one might conclude that Walt Disney is trading at a discount comparatively.

It is also worth noting that DIS currently has a PEG ratio of 1.49. 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 1.06.

The Media Conglomerates industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 25, placing it within the top 11% 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.

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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