Walt Disney (DIS) closed the most recent trading day at $119.48, moving +1.31% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.94%. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 1.52%.
The stock of entertainment company has risen by 3.99% in the past month, leading the Consumer Discretionary sector's gain of 0.66% and the S&P 500's gain of 1.67%.
Analysts and investors alike will be keeping a close eye on the performance of Walt Disney in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.45, showcasing a 4.32% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $23.56 billion, showing a 1.73% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.76 per share and revenue of $94.89 billion, which would represent changes of +15.9% and +3.86%, respectively, from the prior 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, 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. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. Walt Disney currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Walt Disney is at present trading with a Forward P/E ratio of 20.46. This valuation marks a discount compared to its industry average Forward P/E of 21.36.
Investors should also note that DIS has a PEG ratio of 1.73 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Media Conglomerates industry had an average PEG ratio of 2.32.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 26% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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