U.S. Markets closed

Walt Disney (DIS) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Walt Disney (DIS) closed at $133.28 in the latest trading session, marking a +1.22% move from the prior day. This change outpaced the S&P 500's 0.88% gain on the day. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, added 1.32%.

Prior to today's trading, shares of the entertainment company had gained 22.16% over the past month. This has outpaced the Consumer Discretionary sector's gain of 6.07% and the S&P 500's gain of 3.96% 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 May 8, 2019. In that report, analysts expect DIS to post earnings of $1.58 per share. This would mark a year-over-year decline of 14.13%. Meanwhile, our latest consensus estimate is calling for revenue of $14.58 billion, up 0.23% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.79 per share and revenue of $71.23 billion, which would represent changes of -4.1% and +19.85%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.61% lower. DIS is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, DIS is currently trading at a Forward P/E ratio of 19.39. Its industry sports an average Forward P/E of 14.94, so we one might conclude that DIS is trading at a premium comparatively.

Meanwhile, DIS's PEG ratio is currently 3.81. 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. DIS's industry had an average PEG ratio of 2.33 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 189, which puts it in the bottom 26% 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.

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.