Walt Disney (DIS) Outpaces Stock Market Gains: What You Should Know
Walt Disney (DIS) closed the most recent trading day at $97.18, moving +1.08% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.16%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq added 0.49%.
Coming into today, shares of the entertainment company had lost 10.84% in the past month. In that same time, the Consumer Discretionary sector lost 9.96%, while the S&P 500 lost 6.79%.
Investors will be hoping for strength from Walt Disney as it approaches its next earnings release. The company is expected to report EPS of $1.04, up 30% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.3 billion, up 25.15% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.99 per share and revenue of $84.77 billion, which would represent changes of +74.24% and +25.73%, respectively, from the prior year.
Any recent changes to analyst estimates for Walt Disney should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.87% lower. Walt Disney is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Walt Disney is currently trading at a Forward P/E ratio of 24.09. For comparison, its industry has an average Forward P/E of 17.92, which means Walt Disney is trading at a premium to the group.
Investors should also note that DIS has a PEG ratio of 1.14 right now. 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 1.32 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 182, which puts it in the bottom 28% 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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