U.S. markets close in 6 hours 23 minutes
  • S&P 500

    -18.52 (-0.42%)
  • Dow 30

    +0.48 (+0.00%)
  • Nasdaq

    -127.98 (-0.87%)
  • Russell 2000

    +15.07 (+0.68%)
  • Crude Oil

    +0.01 (+0.01%)
  • Gold

    -6.70 (-0.36%)
  • Silver

    -0.16 (-0.61%)

    -0.0013 (-0.11%)
  • 10-Yr Bond

    -0.0250 (-1.97%)

    -0.0014 (-0.10%)

    +0.2650 (+0.24%)

    -1,161.42 (-2.91%)
  • CMC Crypto 200

    -28.88 (-3.04%)
  • FTSE 100

    -47.26 (-0.67%)
  • Nikkei 225

    -498.83 (-1.80%)

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

·3 min read

In the latest trading session, Walt Disney (DIS) closed at $173.97, marking a +0.9% move from the previous day. This move lagged the S&P 500's daily gain of 1.4%.

Heading into today, shares of the entertainment company had gained 0.01% over the past month, outpacing the Consumer Discretionary sector's loss of 0.3% and lagging the S&P 500's gain of 1.07% in that time.

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 $0.57 per share. This would mark year-over-year growth of 612.5%. Meanwhile, our latest consensus estimate is calling for revenue of $16.89 billion, up 43.39% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.28 per share and revenue of $67.6 billion, which would represent changes of +12.87% and +3.44%, respectively, from the prior year.

Investors should also note any 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. DIS is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, DIS is currently trading at a Forward P/E ratio of 75.72. This represents a premium compared to its industry's average Forward P/E of 43.57.

Also, we should mention that DIS has a PEG ratio of 3.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DIS's industry had an average PEG ratio of 2.95 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 139, putting it in the bottom 46% 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.

To follow DIS in the coming trading sessions, be sure to utilize Zacks.com.

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.