Walt Disney (DIS) ended the recent trading session at $111.58, demonstrating a +1.84% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.13% for the day. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw a decrease of 0.72%.
The entertainment company's stock has dropped by 3.7% in the past month, exceeding the Consumer Discretionary sector's loss of 4.91% and lagging the S&P 500's gain of 0.78%.
The investment community will be paying close attention to the earnings performance of Walt Disney in its upcoming release. The company is slated to reveal its earnings on February 2, 2026. The company is expected to report EPS of $1.56, down 11.36% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $25.93 billion, reflecting a 5.01% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $6.58 per share and a revenue of $100.82 billion, demonstrating changes of +10.96% and +6.77%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Walt Disney. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, there's been a 0.25% fall in the Zacks Consensus EPS estimate. Walt Disney is currently a Zacks Rank #3 (Hold).
In the context of valuation, Walt Disney is at present trading with a Forward P/E ratio of 16.65. For comparison, its industry has an average Forward P/E of 16.65, which means Walt Disney is trading at no noticeable deviation to the group.
One should further note that DIS currently holds a PEG ratio of 1.53. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DIS's industry had an average PEG ratio of 1.09 as of yesterday's close.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 160, finds itself in the bottom 35% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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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