In the latest close session, Walt Disney (DIS) was down 1.05% at $112.56. The stock's change was less than the S&P 500's daily gain of 0.44%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 0.7%.
Shares of the entertainment company witnessed a loss of 4.29% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 1.92%, and the S&P 500's gain of 4.03%.
The investment community will be paying close attention to the earnings performance of Walt Disney in its upcoming release. The company is forecasted to report an EPS of $1.03, showcasing a 9.65% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $22.95 billion, indicating a 1.65% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.86 per share and revenue of $94.91 billion, which would represent changes of +17.91% and +3.88%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Walt Disney. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. Currently, Walt Disney is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Walt Disney is holding a Forward P/E ratio of 19.4. This expresses a discount compared to the average Forward P/E of 22.31 of its industry.
Meanwhile, DIS's PEG ratio is currently 1.65. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Media Conglomerates industry was having an average PEG ratio of 2.49.
The Media Conglomerates industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 173, this industry ranks in the bottom 30% of all industries, numbering over 250.
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.
To follow DIS in the coming trading sessions, be sure to utilize Zacks.com.
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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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