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

Zacks Equity Research

Walt Disney (DIS) closed the most recent trading day at $118.44, moving +1.16% from the previous trading session. This move lagged the S&P 500's daily gain of 1.9%. Meanwhile, the Dow gained 2.05%, and the Nasdaq, a tech-heavy index, added 1.75%.

Investors will be hoping for strength from DIS as it approaches its next earnings release. On that day, DIS is projected to report earnings of -$0.35 per share, which would represent a year-over-year decline of 125.93%. Our most recent consensus estimate is calling for quarterly revenue of $12.68 billion, down 37.36% from the year-ago period.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $1.66 per share and revenue of $67.02 billion. These results would represent year-over-year changes of -71.23% and -3.66%, respectively.

Investors might also notice recent changes to analyst estimates for DIS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 20.81% lower. DIS currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, DIS is holding a Forward P/E ratio of 70.6. This valuation marks a premium compared to its industry's average Forward P/E of 44.62.

Also, we should mention that DIS has a PEG ratio of 13.86. 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. DIS's industry had an average PEG ratio of 13.86 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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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