Walt Disney (DIS) Dips More Than Broader Markets: What You Should Know

Walt Disney (DIS) closed the most recent trading day at $98.12, moving -1.39% from the previous trading session. This change lagged the S&P 500's 1.03% loss on the day. Meanwhile, the Dow lost 1.11%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Heading into today, shares of the entertainment company had lost 12.77% over the past month, lagging the Consumer Discretionary sector's loss of 12.39% and the S&P 500's loss of 10.4% in that time.

Walt Disney will be looking to display strength as it nears its next earnings release. In that report, analysts expect Walt Disney to post earnings of $0.64 per share. This would mark year-over-year growth of 72.97%. Our most recent consensus estimate is calling for quarterly revenue of $21.24 billion, up 14.62% from the year-ago period.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $3.85 per share and revenue of $83.8 billion. These results would represent year-over-year changes of +68.12% and +24.31%, 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.

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 0.06% lower. Walt Disney is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Walt Disney is holding a Forward P/E ratio of 25.82. This represents a premium compared to its industry's average Forward P/E of 21.34.

Also, we should mention that DIS has a PEG ratio of 1.3. 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. Media Conglomerates stocks are, on average, holding a PEG ratio of 1.16 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 64, which puts it in the top 26% 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.

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

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