In the latest trading session, Walt Disney (DIS) closed at $176.57, marking a -1% move from the previous day. This change lagged the S&P 500’s daily gain of 0.23%.
Prior to today’s trading, shares of the entertainment company had lost 0.17% over the past month. This has lagged the Consumer Discretionary sector’s gain of 2.8% and the S&P 500’s gain of 2.34% in that time.
Wall Street will be looking for positivity from DIS as it approaches its next earnings report date. In that report, analysts expect DIS to post earnings of $0.57 per share. This would mark year-over-year growth of 612.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.89 billion, up 43.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.28 per share and revenue of $67.6 billion. These totals would mark changes of +12.87% and +3.44%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for DIS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DIS is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, DIS is holding a Forward P/E ratio of 78.32. Its industry sports an average Forward P/E of 46.15, so we one might conclude that DIS is trading at a premium comparatively.
We can also see that DIS currently has a PEG ratio of 3.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Media Conglomerates was holding an average PEG ratio of 3.01 at yesterday’s closing price.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 127, which puts it in the top 50% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.