Walt Disney (DIS) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Walt Disney (DIS) closed at $94.82, marking a -0.84% move from the previous day. This change lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 3.64%.
Prior to today's trading, shares of the entertainment company had lost 4.81% over the past month. This has lagged the Consumer Discretionary sector's loss of 2.9% and the S&P 500's gain of 0.07% in that time.
Wall Street will be looking for positivity from Walt Disney as it approaches its next earnings report date. The company is expected to report EPS of $0.94, down 12.96% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.1 billion, up 14.82% from the year-ago period.
DIS's full-year Zacks Consensus Estimates are calling for earnings of $3.98 per share and revenue of $90.27 billion. These results would represent year-over-year changes of +12.75% and +9.13%, respectively.
It is also important to note the recent changes to analyst estimates for Walt Disney. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Walt Disney is currently a Zacks Rank #3 (Hold).
Digging into valuation, Walt Disney currently has a Forward P/E ratio of 24.03. This valuation marks a discount compared to its industry's average Forward P/E of 27.88.
It is also worth noting that DIS currently has a PEG ratio of 2.35. 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 was holding an average PEG ratio of 2.35 at yesterday's closing price.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% 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.
To follow DIS in the coming trading sessions, be sure to utilize Zacks.com.
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