In the latest trading session, Walt Disney (DIS - Free Report) closed at $116.94, marking a +0.78% move from the previous day. This change outpaced the S&P 500's 0% on the day. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.06%.
Prior to today's trading, shares of the entertainment company had gained 3.68% over the past month. This has outpaced the Consumer Discretionary sector's gain of 1.39% and the S&P 500's gain of 0.78% in that time.
Investors will be hoping for strength from DIS as it approaches its next earnings release, which is expected to be November 8, 2018. On that day, DIS is projected to report earnings of $1.31 per share, which would represent year-over-year growth of 22.43%. Meanwhile, our latest consensus estimate is calling for revenue of $13.81 billion, up 8.05% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.92 per share and revenue of $58.86 billion. These totals would mark changes of +21.4% and +6.75%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for DIS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. DIS is currently a Zacks Rank #4 (Sell).
In terms of valuation, DIS is currently trading at a Forward P/E ratio of 16.77. For comparison, its industry has an average Forward P/E of 16.77, which means DIS is trading at a no noticeable deviation to the group.
We can also see that DIS currently has a PEG ratio of 1.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Media Conglomerates stocks are, on average, holding a PEG ratio of 1.41 based on yesterday's closing prices.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 234, which puts it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.