Walt Disney (DIS - Free Report) closed the most recent trading day at $131.33, moving -1.32% from the previous trading session. This move lagged the S&P 500's daily loss of 0.24%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, lost 0.58%.
Heading into today, shares of the entertainment company had lost 2.53% over the past month, lagging the Consumer Discretionary sector's gain of 4.37% and the S&P 500's gain of 4.96% in that time.
Wall Street will be looking for positivity from DIS as it approaches its next earnings report date. This is expected to be November 7, 2019. The company is expected to report EPS of $0.97, down 34.46% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $18.91 billion, up 32.16% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.79 per share and revenue of $70 billion, which would represent changes of -18.22% and +17.79%, respectively, from the prior year.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.07% lower. DIS is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note DIS's current valuation metrics, including its Forward P/E ratio of 23. For comparison, its industry has an average Forward P/E of 14.52, which means DIS is trading at a premium to the group.
Meanwhile, DIS's PEG ratio is currently 4.56. 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. The Media Conglomerates industry currently had an average PEG ratio of 2.73 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 232, which puts it in the bottom 10% 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.