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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 $147.68, moving -0.53% from the previous trading session. This change lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.1%.

Heading into today, shares of the entertainment company had gained 0.55% over the past month, lagging the Consumer Discretionary sector's gain of 3.47% and the S&P 500's gain of 1.82% in that time.

Wall Street will be looking for positivity from DIS as it approaches its next earnings report date. In that report, analysts expect DIS to post earnings of $1.48 per share. This would mark a year-over-year decline of 19.57%. Our most recent consensus estimate is calling for quarterly revenue of $21.14 billion, up 38.15% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.36 per share and revenue of $81.50 billion. These totals would mark changes of -7.11% and +17.14%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 4.64% lower. DIS is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, DIS is holding a Forward P/E ratio of 27.72. This valuation marks a premium compared to its industry's average Forward P/E of 19.69.

It is also worth noting that DIS currently has a PEG ratio of 5.82. 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 5.82 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 98, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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