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

Zacks Equity Research

In the latest trading session, Walt Disney (DIS) closed at $130.28, marking a -0.47% move from the previous day. This move lagged the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.22%, and the tech-heavy Nasdaq gained 0.91%.

Prior to today's trading, shares of the entertainment company had lost 1.81% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 2.22% and lagged the S&P 500's loss of 0.61% 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 November 7, 2019. On that day, DIS is projected to report earnings of $0.95 per share, which would represent a year-over-year decline of 35.81%. Meanwhile, our latest consensus estimate is calling for revenue of $19.03 billion, up 32.99% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for DIS. These revisions help to show the ever-changing nature of 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.78% lower. DIS is currently sporting a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that DIS has a Forward P/E ratio of 22.13 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.04.

Investors should also note that DIS has a PEG ratio of 4.39 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Media Conglomerates was holding an average PEG ratio of 2.57 at yesterday's closing price.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 242, which puts it in the bottom 6% 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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