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Walt Disney (DIS) Laps the Stock Market: Here's Why

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Walt Disney (DIS - Free Report) ended the recent trading session at $103.75, demonstrating a +2.42% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 1.02%. Meanwhile, the Dow experienced a rise of 1.62%, and the technology-dominated Nasdaq saw an increase of 0.89%.

The entertainment company's shares have seen an increase of 4.91% over the last month, surpassing the Consumer Discretionary sector's gain of 3.07% and falling behind the S&P 500's gain of 12.23%.

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. Our most recent consensus estimate is calling for quarterly revenue of $25.03 billion, up 5.96% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.61 per share and revenue of $101.05 billion. These totals would mark changes of +11.47% and +7.02%, respectively, from last year.

Any recent changes to analyst estimates for Walt Disney should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Walt Disney presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Walt Disney is presently being traded at a Forward P/E ratio of 15.32. Its industry sports an average Forward P/E of 20.58, 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 1.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DIS's industry had an average PEG ratio of 0.91 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 57, this industry ranks in the top 24% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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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