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

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Walt Disney (DIS - Free Report) closed the most recent trading day at $147.56, moving +1% from the previous trading session. This change outpaced the S&P 500's 0.29% gain on the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.44%.

Coming into today, shares of the entertainment company had gained 5.43% in the past month. In that same time, the Consumer Discretionary sector gained 2.04%, while the S&P 500 gained 1.51%.

Wall Street will be looking for positivity from DIS as it approaches its next earnings report date. On that day, DIS is projected to report earnings of $1.48 per share, which would represent a year-over-year decline of 19.57%. Meanwhile, our latest consensus estimate is calling for revenue of $21.12 billion, up 38% from the prior-year quarter.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $5.61 per share and revenue of $81.50 billion. These results would represent year-over-year changes of -2.77% and +17.14%, respectively.

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. 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. The Zacks Consensus EPS estimate has moved 2.14% lower within the past month. DIS is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note DIS's current valuation metrics, including its Forward P/E ratio of 26.05. This valuation marks a premium compared to its industry's average Forward P/E of 18.71.

We can also see that DIS currently has a PEG ratio of 5.47. 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. The Media Conglomerates was holding an average PEG ratio of 5.47 at yesterday's closing price.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 94, putting it in the top 37% 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.

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


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