In the latest trading session, Walt Disney (DIS - Free Report) closed at $110.56, marking a +0.87% move from the previous day. This change outpaced the S&P 500's 0.7% gain on the day. Elsewhere, the Dow gained 0.42%, while the tech-heavy Nasdaq added 1.26%.
Coming into today, shares of the entertainment company had lost 4.13% in the past month. In that same time, the Consumer Discretionary sector lost 4.25%, while the S&P 500 lost 6.13%.
Wall Street will be looking for positivity from DIS as it approaches its next earnings report date. This 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, the Zacks Consensus Estimate for revenue is projecting net sales of $15.15 billion, down 1.33% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.05 per share and revenue of $60.46 billion. These totals would mark changes of -0.42% and +1.73%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for DIS. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 has moved 0.17% lower. DIS is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, DIS is currently trading at a Forward P/E ratio of 15.54. For comparison, its industry has an average Forward P/E of 10.94, which means DIS is trading at a premium to the group.
Investors should also note that DIS has a PEG ratio of 1.88 right now. 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. Media Conglomerates stocks are, on average, holding a PEG ratio of 1.44 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 106, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow DIS in the coming trading sessions, be sure to utilize Zacks.com.