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Walt Disney (DIS) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Walt Disney (DIS - Free Report) closed at $116.31, marking a -1.11% move from the previous day. This move lagged the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 1.67%.

Coming into today, shares of the entertainment company had gained 5.61% in the past month. In that same time, the Consumer Discretionary sector gained 6.27%, while the S&P 500 gained 5.51%.

Investors will be hoping for strength from DIS as it approaches its next earnings release, which is expected to be August 4, 2020. On that day, DIS is projected to report earnings of -$0.43 per share, which would represent a year-over-year decline of 131.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.65 billion, down 37.5% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.38 per share and revenue of $66.96 billion. These totals would mark changes of -76.08% and -3.75%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for DIS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.59% lower. DIS is currently a Zacks Rank #5 (Strong Sell).

Looking at its valuation, DIS is holding a Forward P/E ratio of 85.22. For comparison, its industry has an average Forward P/E of 51.77, which means DIS is trading at a premium to the group.

Investors should also note that DIS has a PEG ratio of 13.58 right now. 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. Media Conglomerates stocks are, on average, holding a PEG ratio of 13.58 based on yesterday's closing prices.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 238, which puts it in the bottom 7% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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