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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 $124.13 in the latest trading session, marking a -1.01% move from the prior day. This change lagged the S&P 500's daily gain of 0.83%. At the same time, the Dow added 1.2%, and the tech-heavy Nasdaq gained 0.74%.

Coming into today, shares of the entertainment company had lost 6.1% in the past month. In that same time, the Consumer Discretionary sector lost 2.48%, while the S&P 500 lost 4.83%.

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 -$0.60 per share, which would represent a year-over-year decline of 156.07%. Our most recent consensus estimate is calling for quarterly revenue of $14.58 billion, down 23.65% from the year-ago period.

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.

Investors might also notice 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.

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.

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 is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that DIS has a Forward P/E ratio of 77.73 right now. This represents a premium compared to its industry's average Forward P/E of 48.36.

Also, we should mention that DIS has a PEG ratio of 11.61. 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. The Media Conglomerates was holding an average PEG ratio of 11.61 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 122, which puts it in the top 49% 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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