In the latest close session, Walt Disney (DIS) was up +1.11% at $114.48. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. Meanwhile, the Dow experienced a rise of 0.6%, and the technology-dominated Nasdaq saw an increase of 0.22%.
The stock of entertainment company has risen by 9.59% in the past month, leading the Consumer Discretionary sector's gain of 3.01% and the S&P 500's gain of 4.7%.
The upcoming earnings release of Walt Disney will be of great interest to investors. The company is predicted to post an EPS of $1.57, indicating a 10.8% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $26.04 billion, indicating a 5.47% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.6 per share and a revenue of $101.2 billion, signifying shifts of +11.3% and +7.17%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Walt Disney. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.41% rise in the Zacks Consensus EPS estimate. Walt Disney presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Walt Disney is holding a Forward P/E ratio of 17.15. Its industry sports an average Forward P/E of 20.05, so one might conclude that Walt Disney is trading at a discount comparatively.
One should further note that DIS currently holds a PEG ratio of 1.56. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Media Conglomerates industry held an average PEG ratio of 1.59.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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