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

Zacks Equity Research

In the latest trading session, Walt Disney (DIS) closed at $122.18, marking a -1.38% move from the previous day. This change lagged the S&P 500's 0.53% loss on the day. Elsewhere, the Dow lost 1.04%, while the tech-heavy Nasdaq added 0.67%.

Wall Street will be looking for positivity from DIS as it approaches its next earnings report date. In that report, analysts expect DIS to post earnings of -$0.40 per share. This would mark a year-over-year decline of 129.63%. Our most recent consensus estimate is calling for quarterly revenue of $12.68 billion, down 37.36% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.66 per share and revenue of $67.02 billion. These totals would mark changes of -71.23% and -3.66%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for DIS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 20.81% lower within the past month. DIS is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, DIS currently has a Forward P/E ratio of 74.71. This represents a premium compared to its industry's average Forward P/E of 46.1.

Investors should also note that DIS has a PEG ratio of 14.66 right now. 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. DIS's industry had an average PEG ratio of 14.66 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 32% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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