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

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In the latest trading session, Walt Disney (DIS - Free Report) closed at $148.76, marking a +0.01% move from the previous day. This change outpaced the S&P 500's 1.03% loss on the day. Elsewhere, the Dow lost 1.48%, while the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the entertainment company had lost 4.39% in the past month. In that same time, the Consumer Discretionary sector lost 10.15%, while the S&P 500 lost 0.62%.

Walt Disney will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.62, up 93.75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $20.97 billion, up 29.03% from the prior-year quarter.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $4.22 per share and revenue of $83.77 billion. These results would represent year-over-year changes of +84.28% and +24.26%, respectively.

Investors might also notice recent changes to analyst estimates for Walt Disney. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 1.51% lower within the past month. Walt Disney is currently a Zacks Rank #5 (Strong Sell).

In terms of valuation, Walt Disney is currently trading at a Forward P/E ratio of 35.26. This represents a discount compared to its industry's average Forward P/E of 40.14.

We can also see that DIS currently has a PEG ratio of 1.55. 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. The Media Conglomerates industry currently had an average PEG ratio of 1.71 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 245, which puts it in the bottom 4% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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