Walt Disney (DIS - Free Report) closed at $111.15 in the latest trading session, marking a -1.52% move from the prior day. This move was narrower than the S&P 500's daily loss of 2.06%. At the same time, the Dow lost 2.13%, and the tech-heavy Nasdaq lost 1.25%.
Coming into today, shares of the entertainment company had gained 3.11% in the past month. In that same time, the Consumer Discretionary sector lost 4.7%, while the S&P 500 lost 3.01%.
DIS will be looking to display strength as it nears its next earnings release, which is expected to be November 8, 2018. In that report, analysts expect DIS to post earnings of $1.31 per share. This would mark year-over-year growth of 22.43%. Our most recent consensus estimate is calling for quarterly revenue of $13.81 billion, up 8.05% from the year-ago period.
Investors might also notice recent changes to analyst estimates for DIS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. DIS is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, DIS currently has a Forward P/E ratio of 15.56. Its industry sports an average Forward P/E of 11.38, so we one might conclude that DIS is trading at a premium comparatively.
Also, we should mention that DIS has a PEG ratio of 1.42. 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. The Media Conglomerates industry currently had an average PEG ratio of 1.26 as of yesterday's close.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.