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Walt Disney (DIS) Dips More Than Broader Markets: What You Should Know

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Walt Disney (DIS - Free Report) closed at $175.55 in the latest trading session, marking a -0.27% move from the prior day. This change lagged the S&P 500's 0.18% loss on the day.

Prior to today's trading, shares of the entertainment company had lost 0.62% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 3.34% and lagged 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, which is expected to be August 12, 2021. On that day, DIS is projected to report earnings of $0.57 per share, which would represent year-over-year growth of 612.5%. Our most recent consensus estimate is calling for quarterly revenue of $16.82 billion, up 42.83% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.32 per share and revenue of $67.62 billion. These totals would mark changes of +14.85% and +3.46%, respectively, from last year.

Any recent changes to analyst estimates for DIS should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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 has moved 2.92% higher within the past month. DIS currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, DIS is holding a Forward P/E ratio of 75.78. For comparison, its industry has an average Forward P/E of 42.75, which means DIS is trading at a premium to the group.

It is also worth noting that DIS currently has a PEG ratio of 3.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DIS's industry had an average PEG ratio of 2.96 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 70, which puts it in the top 28% 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.

To follow DIS in the coming trading sessions, be sure to utilize Zacks.com.


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