In the latest trading session, Walt Disney (DIS - Free Report) closed at $107.28, marking a +0.71% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.12%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, added 0.08%.
Coming into today, shares of the entertainment company had lost 8.65% in the past month. In that same time, the Consumer Discretionary sector lost 8.38%, while the S&P 500 lost 6.96%.
Investors will be hoping for strength from DIS as it approaches its next earnings release, which is expected to be February 5, 2019. The company is expected to report EPS of $1.59, down 15.87% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.15 billion, down 1.33% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.11 per share and revenue of $60.46 billion. These totals would mark changes of +0.42% and +1.73%, respectively, from last year.
Any recent changes to analyst estimates for DIS should also be noted by investors. Recent revisions tend to reflect the latest near-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.
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, the Zacks Consensus EPS estimate has moved 0.55% higher. DIS is currently a Zacks Rank #3 (Hold).
In terms of valuation, DIS is currently trading at a Forward P/E ratio of 14.99. For comparison, its industry has an average Forward P/E of 10.55, which means DIS is trading at a premium to the group.
Also, we should mention that DIS has a PEG ratio of 1.81. 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 1.38 as of yesterday's close.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 104, putting it in the top 40% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.