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

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In the latest trading session, Walt Disney (DIS - Free Report) closed at $144.55, marking a +0.54% move from the previous day. This change outpaced the S&P 500's 0.3% gain on the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.3%.

Prior to today's trading, shares of the entertainment company had lost 4.55% over the past month. This has lagged the Consumer Discretionary sector's gain of 3.47% and the S&P 500's gain of 2.69% 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 $0.95, down 48.37% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $21.14 billion, up 38.15% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.35 per share and revenue of $81.50 billion, which would represent changes of -7.28% and +17.14%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for DIS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.58% lower. DIS is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, DIS is holding a Forward P/E ratio of 26.86. This represents a premium compared to its industry's average Forward P/E of 19.11.

Meanwhile, DIS's PEG ratio is currently 5.64. 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. Media Conglomerates stocks are, on average, holding a PEG ratio of 5.64 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 99, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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