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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 $154.87, marking a -0.21% move from the previous day. This move lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.33%.

Prior to today's trading, shares of the entertainment company had gained 7.11% over the past month. This has outpaced the Consumer Discretionary sector's loss of 1.28% and the S&P 500's gain of 4.32% in that time.

Wall Street will be looking for positivity from Walt Disney as it approaches its next earnings report date. In that report, analysts expect Walt Disney to post earnings of $0.62 per share. This would mark year-over-year growth of 93.75%. Our most recent consensus estimate is calling for quarterly revenue of $21.11 billion, up 29.91% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.22 per share and revenue of $84.03 billion. These totals would mark changes of +84.28% and +24.65%, respectively, from last year.

Investors should also note any 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.51% lower. 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 36.79. For comparison, its industry has an average Forward P/E of 43.62, which means Walt Disney is trading at a discount to the group.

Also, we should mention that DIS has a PEG ratio of 1.62. 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. DIS's industry had an average PEG ratio of 1.78 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 248, which puts it in the bottom 3% 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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