Walt Disney (DIS) ended the recent trading session at $111.46, demonstrating a +2.42% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.21%. At the same time, the Dow added 1.35%, and the tech-heavy Nasdaq lost 0.26%.
The stock of entertainment company has fallen by 6.7% in the past month, lagging the Consumer Discretionary sector's loss of 1.63% and the S&P 500's gain of 0.89%.
The investment community will be closely monitoring the performance of Walt Disney in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.57, reflecting a 10.8% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.04 billion, up 5.45% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.59 per share and a revenue of $101.18 billion, representing changes of +11.13% and +7.15%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Walt Disney. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 1.61% higher. At present, Walt Disney boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Walt Disney is presently being traded at a Forward P/E ratio of 16.51. This signifies a discount in comparison to the average Forward P/E of 20.92 for its industry.
It is also worth noting that DIS currently has a PEG ratio of 1.5. 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. As the market closed yesterday, the Media Conglomerates industry was having an average PEG ratio of 1.57.
The Media Conglomerates industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 188, this industry ranks in the bottom 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on 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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