Walt Disney (DIS) closed the latest trading day at $98.70, indicating a +0.64% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.55%. Meanwhile, the Dow experienced a rise of 1.01%, and the technology-dominated Nasdaq saw a decrease of 0.14%.
Shares of the entertainment company have depreciated by 13.82% over the course of the past month, underperforming the Consumer Discretionary sector's loss of 7.91% and the S&P 500's loss of 6.22%.
Investors will be eagerly watching for the performance of Walt Disney in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.19, signifying a 1.65% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $23.19 billion, indicating a 5.03% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.48 per share and revenue of $94.64 billion, indicating changes of +10.26% and +3.59%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Walt Disney. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. Walt Disney is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Walt Disney is presently being traded at a Forward P/E ratio of 17.9. This represents a discount compared to its industry's average Forward P/E of 23.42.
One should further note that DIS currently holds a PEG ratio of 1.59. 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. Media Conglomerates stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 26% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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The Walt Disney Company (DIS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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