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Walt Disney (DIS) closed the most recent trading day at $136.51, moving -0.69% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.22%. At the same time, the Dow lost 0.19%, and the tech-heavy Nasdaq lost 0.54%.
Heading into today, shares of the entertainment company had lost 10.04% over the past month, outpacing the Consumer Discretionary sector's loss of 10.68% and lagging the S&P 500's loss of 6.58% in that time.
Walt Disney will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2022. In that report, analysts expect Walt Disney to post earnings of $0.60 per share. This would mark year-over-year growth of 87.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.15 billion, up 30.14% from the year-ago period.
DIS's full-year Zacks Consensus Estimates are calling for earnings of $4.20 per share and revenue of $84.03 billion. These results would represent year-over-year changes of +83.41% and +24.64%, respectively.
Investors should also note any recent changes to analyst estimates for Walt Disney. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. Walt Disney is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Walt Disney is currently trading at a Forward P/E ratio of 32.7. Its industry sports an average Forward P/E of 25.78, so we one might conclude that Walt Disney is trading at a premium comparatively.
Also, we should mention that DIS has a PEG ratio of 1.44. 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 1.6 as of yesterday's close.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 217, putting it in the bottom 15% 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.
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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