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Walt Disney (DIS) Gains But Lags Market: What You Should Know

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In the latest trading session, Walt Disney (DIS) closed at $176.89, marking a +0.08% move from the previous day. The stock lagged the S&P 500's daily gain of 0.82%.

Heading into today, shares of the entertainment company had gained 1.87% over the past month, outpacing the Consumer Discretionary sector's loss of 0.63% and lagging the S&P 500's gain of 3.89% in that time.

Wall Street will be looking for positivity from DIS as it approaches its next earnings report date. This is expected to be August 12, 2021. In that report, analysts expect DIS to post earnings of $0.57 per share. This would mark year-over-year growth of 612.5%. Our most recent consensus estimate is calling for quarterly revenue of $16.81 billion, up 42.71% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.33 per share and revenue of $67.61 billion, which would represent changes of +15.35% and +3.45%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DIS. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 2.46% higher within the past month. DIS is currently a Zacks Rank #3 (Hold).

In terms of valuation, DIS is currently trading at a Forward P/E ratio of 75.75. For comparison, its industry has an average Forward P/E of 41.78, which means DIS is trading at a premium to the group.

Also, we should mention that DIS has a PEG ratio of 3.61. 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 2.9 at yesterday's closing price.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 215, putting it in the bottom 16% 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.

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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