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

Zacks Equity Research

Walt Disney (DIS) closed at $145.04 in the latest trading session, marking a +0.11% move from the prior day. This move outpaced the S&P 500's daily gain of 0.02%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.17%.

Coming into today, shares of the entertainment company had gained 2.22% in the past month. In that same time, the Consumer Discretionary sector gained 5.47%, while the S&P 500 gained 4.82%.

Wall Street will be looking for positivity from DIS as it approaches its next earnings report date. This is expected to be August 6, 2019. In that report, analysts expect DIS to post earnings of $1.76 per share. This would mark a year-over-year decline of 5.88%. Our most recent consensus estimate is calling for quarterly revenue of $21.68 billion, up 42.35% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.57 per share and revenue of $71.61 billion, which would represent changes of -7.2% and +20.49%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.16% lower. DIS currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, DIS is holding a Forward P/E ratio of 22.04. Its industry sports an average Forward P/E of 14.9, so we one might conclude that DIS is trading at a premium comparatively.

Meanwhile, DIS's PEG ratio is currently 4.37. 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 2.73 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 232, which puts it in the bottom 10% 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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