The most recent trading session ended with Walt Disney (DIS) standing at $90.16, reflecting a -0.13% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.1%.
Shares of the entertainment company witnessed a loss of 7.94% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 4.33% and the S&P 500's loss of 4.29%.
Analysts and investors alike will be keeping a close eye on the performance of Walt Disney in its upcoming earnings disclosure. The company's earnings report is set to go public on May 7, 2025. The company is predicted to post an EPS of $1.19, indicating a 1.65% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $23.14 billion, up 4.78% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.47 per share and revenue of $94.61 billion, indicating changes of +10.06% and +3.56%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Walt Disney. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 0.2% fall in the Zacks Consensus EPS estimate. Right now, Walt Disney possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Walt Disney is currently exchanging hands at a Forward P/E ratio of 16.51. Its industry sports an average Forward P/E of 17.65, so one might conclude that Walt Disney is trading at a discount comparatively.
It's also important to note that DIS currently trades at a PEG ratio of 1.47. 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. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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