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

Zacks Equity Research
·3 min read

In the latest trading session, Walt Disney (DIS) closed at $173.12, marking a -0.47% move from the previous day. This move lagged the S&P 500's daily gain of 0.18%. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.5%.

Heading into today, shares of the entertainment company had gained 20.37% over the past month, outpacing the Consumer Discretionary sector's gain of 10.03% and the S&P 500's gain of 3.22% in that time.

Wall Street will be looking for positivity from DIS as it approaches its next earnings report date. The company is expected to report EPS of -$0.24, down 115.69% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $16.33 billion, down 21.72% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.15 per share and revenue of $70.14 billion, which would represent changes of +6.44% and +7.33%, respectively, from the prior year.

Any recent changes to analyst estimates for DIS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 15.71% lower. DIS is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, DIS is holding a Forward P/E ratio of 80.93. This valuation marks a premium compared to its industry's average Forward P/E of 52.79.

Also, we should mention that DIS has a PEG ratio of 4.17. 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 4.17 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 236, which puts it in the bottom 8% 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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