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

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Zacks Equity Research
·3 min read
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Walt Disney (DIS) closed at $100.95 in the latest trading session, marking a +0.41% move from the prior day. The stock lagged the S&P 500's daily gain of 2.29%. Meanwhile, the Dow gained 1.99%, and the Nasdaq, a tech-heavy index, added 2.81%.

Coming into today, shares of the entertainment company had gained 2.47% in the past month. In that same time, the Consumer Discretionary sector gained 18.15%, while the S&P 500 gained 19.13%.

Wall Street will be looking for positivity from DIS as it approaches its next earnings report date. This is expected to be May 5, 2020. On that day, DIS is projected to report earnings of $0.83 per share, which would represent a year-over-year decline of 48.45%. Meanwhile, our latest consensus estimate is calling for revenue of $18.03 billion, up 20.85% from the prior-year quarter.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $2.93 per share and revenue of $74.02 billion. These results would represent year-over-year changes of -49.22% and +6.39%, respectively.

Investors should also note any 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 34.78% lower. DIS is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, DIS is holding a Forward P/E ratio of 34.33. This valuation marks a premium compared to its industry's average Forward P/E of 22.6.

We can also see that DIS currently has a PEG ratio of 6.74. 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. The Media Conglomerates was holding an average PEG ratio of 6.74 at yesterday's closing price.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 33% 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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The Walt Disney Company (DIS) : Free Stock Analysis Report
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