Walt Disney (DIS - Free Report) closed the most recent trading day at $114.32, moving +1.28% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, added 0.42%.
Prior to today's trading, shares of the entertainment company had lost 3.57% over the past month. This has lagged the Consumer Discretionary sector's loss of 3.37% and the S&P 500's loss of 1.1% in that time.
DIS will be looking to display strength as it nears its next earnings release, which is expected to be February 5, 2019. On that day, DIS is projected to report earnings of $1.60 per share, which would represent a year-over-year decline of 15.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.29 billion, down 0.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.04 per share and revenue of $60.40 billion, which would represent changes of -0.56% and +1.63%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for DIS. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 2.47% lower. DIS currently has a Zacks Rank of #3 (Hold).
Investors should also note DIS's current valuation metrics, including its Forward P/E ratio of 15.97. Its industry sports an average Forward P/E of 11.6, so we one might conclude that DIS is trading at a premium comparatively.
It is also worth noting that DIS currently has a PEG ratio of 1.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Media Conglomerates was holding an average PEG ratio of 1.39 at yesterday's closing price.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 110, putting it in the top 43% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.