Walt Disney (DIS) closed the most recent trading day at $129.70, moving -0.25% from the previous trading session. This change lagged the S&P 500's 0.14% loss on the day. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Coming into today, shares of the entertainment company had lost 5.44% in the past month. In that same time, the Consumer Discretionary sector lost 3.5%, while the S&P 500 lost 0.91%.
DIS will be looking to display strength as it nears its next earnings release, which is expected to be November 7, 2019. The company is expected to report EPS of $0.95, down 35.81% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.77 billion, up 31.19% from the year-ago period.
It is also important to note the recent changes to analyst estimates for DIS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 has moved 4.78% lower within the past month. DIS currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, DIS is currently trading at a Forward P/E ratio of 21.98. This represents a premium compared to its industry's average Forward P/E of 12.07.
Investors should also note that DIS has a PEG ratio of 4.36 right now. 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 2.57 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 233, which puts it in the bottom 9% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.