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Walt Disney (DIS) Stock Sinks As Market Gains: What You Should Know

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Walt Disney (DIS - Free Report) closed at $114.99 in the latest trading session, marking a -0.01% move from the prior day. This move lagged the S&P 500's daily gain of 0.11%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, added 0.19%.

Coming into today, shares of the entertainment company had gained 0.87% in the past month. In that same time, the Consumer Discretionary sector gained 2.41%, while the S&P 500 gained 3.84%.

DIS will be looking to display strength as it nears its next earnings release, which is expected to be May 8, 2019. The company is expected to report EPS of $1.63, down 11.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.42 billion, down 0.86% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.98 per share and revenue of $69.93 billion. These totals would mark changes of -1.41% and +17.65%, respectively, from last year.

Any recent changes to analyst estimates for DIS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 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 2.54% lower. DIS is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note DIS's current valuation metrics, including its Forward P/E ratio of 16.48. For comparison, its industry has an average Forward P/E of 15.04, which means DIS is trading at a premium to the group.

Investors should also note that DIS has a PEG ratio of 3.13 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. The Media Conglomerates industry currently had an average PEG ratio of 2.01 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.




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