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

Zacks Equity Research

Walt Disney (DIS) closed the most recent trading day at $130.51, moving -0.3% from the previous trading session. This change lagged the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 1.01%.

Heading into today, shares of the entertainment company had lost 0.28% over the past month, lagging the Consumer Discretionary sector's gain of 0.64% and the S&P 500's gain of 1.38% 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%. Our most recent consensus estimate is calling for quarterly revenue of $19.03 billion, up 32.99% from the year-ago period.

It is also important to note the 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 has moved 4.72% lower within the past month. DIS currently has a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, DIS is holding a Forward P/E ratio of 22.13. For comparison, its industry has an average Forward P/E of 11.94, which means DIS is trading at a premium to the group.

Investors should also note that DIS has a PEG ratio of 4.39 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. DIS's industry had an average PEG ratio of 2.56 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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