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

Zacks Equity Research
Albany International (AIN) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Walt Disney (DIS) closed at $139.18 in the latest trading session, marking a -1.27% move from the prior day. This change lagged the S&P 500's daily gain of 0.97%. Elsewhere, the Dow gained 1.35%, while the tech-heavy Nasdaq added 1.39%.

Heading into today, shares of the entertainment company had gained 5.27% over the past month, outpacing the Consumer Discretionary sector's gain of 0.28% and the S&P 500's gain of 0.64% in that time.

Wall Street will be looking for positivity from DIS as it approaches its next earnings report date. On that day, DIS is projected to report earnings of $1.76 per share, which would represent a year-over-year decline of 5.88%. Our most recent consensus estimate is calling for quarterly revenue of $21.68 billion, up 42.39% from the year-ago period.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $6.63 per share and revenue of $71.61 billion. These results would represent year-over-year changes of -6.36% and +20.49%, respectively.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.24% lower within the past month. DIS is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note DIS's current valuation metrics, including its Forward P/E ratio of 21.25. Its industry sports an average Forward P/E of 14.15, so we one might conclude that DIS is trading at a premium comparatively.

Investors should also note that DIS has a PEG ratio of 3.78 right now. 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. The Media Conglomerates industry currently had an average PEG ratio of 2.39 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 223, which puts it in the bottom 13% 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.

To follow DIS in the coming trading sessions, be sure to utilize Zacks.com.


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