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

Zacks Equity Research
·3 mins read

Walt Disney (DIS) closed at $122.49 in the latest trading session, marking a -0.64% move from the prior day. This change lagged the S&P 500's 0.3% gain on the day. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.37%.

Heading into today, shares of the entertainment company had lost 6.73% over the past month, lagging the Consumer Discretionary sector's gain of 0.22% and the S&P 500's loss of 5.02% in that time.

Investors will be hoping for strength from DIS as it approaches its next earnings release. The company is expected to report EPS of -$0.60, down 156.07% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.58 billion, down 23.65% from the prior-year quarter.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $1.61 per share and revenue of $65.41 billion. These results would represent year-over-year changes of -72.1% and -5.98%, respectively.

It is also important to note the recent changes to analyst estimates for DIS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DIS currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that DIS has a Forward P/E ratio of 76.41 right now. This represents a premium compared to its industry's average Forward P/E of 46.81.

We can also see that DIS currently has a PEG ratio of 11.41. 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 11.41 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 126, which puts it in the top 50% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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