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

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In the latest trading session, Walt Disney (DIS) closed at $150.11, marking a -1.42% move from the previous day. This change lagged the S&P 500's 0.97% loss on the day. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq gained 0.23%.

Coming into today, shares of the entertainment company had gained 0.81% in the past month. In that same time, the Consumer Discretionary sector lost 2.74%, while the S&P 500 lost 0.78%.

Investors will be hoping for strength from Walt Disney as it approaches its next earnings release, which is expected to be February 9, 2022. On that day, Walt Disney is projected to report earnings of $0.60 per share, which would represent year-over-year growth of 87.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.15 billion, up 30.14% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.20 per share and revenue of $84.03 billion. These totals would mark changes of +83.41% and +24.64%, respectively, from last year.

Any recent changes to analyst estimates for Walt Disney should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Walt Disney is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Walt Disney has a Forward P/E ratio of 36.22 right now. This valuation marks a premium compared to its industry's average Forward P/E of 27.73.

It is also worth noting that DIS currently has a PEG ratio of 1.59. 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. The Media Conglomerates industry currently had an average PEG ratio of 1.65 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 17% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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