Walt Disney (DIS) closed the most recent trading day at $109.99, moving -0.01% from the previous trading session. This change was narrower than the S&P 500's 0.29% loss on the day. Elsewhere, the Dow lost 0.55%, while the tech-heavy Nasdaq added 0.07%.
Heading into today, shares of the entertainment company had lost 3.09% over the past month, lagging the Consumer Discretionary sector's loss of 0.55% and the S&P 500's gain of 2.14% in that time.
DIS will be looking to display strength as it nears its next earnings release. In that report, analysts expect DIS to post earnings of $1.63 per share. This would mark a year-over-year decline of 11.41%. Our most recent consensus estimate is calling for quarterly revenue of $14.44 billion, down 0.73% from the year-ago period.
DIS's full-year Zacks Consensus Estimates are calling for earnings of $7.09 per share and revenue of $60.48 billion. These results would represent year-over-year changes of +0.14% and +1.76%, respectively.
Investors should also note any recent changes to analyst estimates for DIS. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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 0.07% lower. DIS currently has a Zacks Rank of #3 (Hold).
Investors should also note DIS's current valuation metrics, including its Forward P/E ratio of 15.53. This valuation marks a premium compared to its industry's average Forward P/E of 11.04.
We can also see that DIS currently has a PEG ratio of 2.64. 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 1.72 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 44, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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