In the latest trading session, Walt Disney (DIS) closed at $111.87, marking a +1.12% move from the previous day. This change outpaced the S&P 500's 0.79% gain on the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 1.38%.
The stock of entertainment company has risen by 5.69% in the past month, leading the Consumer Discretionary sector's gain of 2.39% and the S&P 500's gain of 0.87%.
The upcoming earnings release of Walt Disney will be of great interest to investors. 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, our latest consensus estimate is calling for revenue of $26.04 billion, up 5.45% from the prior-year quarter.
DIS's full-year Zacks Consensus Estimates are calling for earnings of $6.59 per share and revenue of $101.18 billion. These results would represent year-over-year changes of +11.13% and +7.15%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Walt Disney. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.24% upward. Walt Disney is currently a Zacks Rank #3 (Hold).
In terms of valuation, Walt Disney is currently trading at a Forward P/E ratio of 16.79. This denotes a discount relative to the industry average Forward P/E of 20.11.
It's also important to note that DIS currently trades at a PEG ratio of 1.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Media Conglomerates industry stood at 1.58 at the close of the market yesterday.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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