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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 $124.97, marking a -0.01% move from the previous day. This move lagged the S&P 500's daily gain of 1.64%. Elsewhere, the Dow gained 0.88%, while the tech-heavy Nasdaq added 2.56%.

Prior to today's trading, shares of the entertainment company had lost 6.19% over the past month. This has lagged the Consumer Discretionary sector's gain of 2.3% and the S&P 500's gain of 2.44% in that time.

DIS will be looking to display strength as it nears its next earnings release. In that report, analysts expect DIS to post earnings of -$0.60 per share. This would mark a year-over-year decline of 156.07%. Meanwhile, our latest consensus estimate is calling for revenue of $14.60 billion, down 23.56% from the prior-year quarter.

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. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.83% lower within the past month. DIS currently has a Zacks Rank of #3 (Hold).

In terms of valuation, DIS is currently trading at a Forward P/E ratio of 41.15. For comparison, its industry has an average Forward P/E of 30.54, which means DIS is trading at a premium to the group.

Investors should also note that DIS has a PEG ratio of 6.15 right now. 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 industry currently had an average PEG ratio of 6.15 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% 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.

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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