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

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Walt Disney (DIS - Free Report) closed the most recent trading day at $135.68, moving +0.44% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, lost 0.38%.

Heading into today, shares of the entertainment company had gained 1.41% over the past month, outpacing the Consumer Discretionary sector's loss of 1.55% and the S&P 500's gain of 0.33% in that time.

Investors will be hoping for strength from DIS as it approaches its next earnings release. The company is expected to report EPS of $1.77, down 5.35% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $21.68 billion, up 42.39% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.67 per share and revenue of $71.47 billion. These totals would mark changes of -5.79% and +20.25%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.89% lower. DIS is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that DIS has a Forward P/E ratio of 20.26 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.29.

It is also worth noting that DIS currently has a PEG ratio of 3.61. 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. Media Conglomerates stocks are, on average, holding a PEG ratio of 2.3 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 207, which puts it in the bottom 20% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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