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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 the most recent trading day at $86.88, moving -0.34% from the previous trading session. This change lagged the S&P 500's daily loss of 0.25%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 5.91%.

Coming into today, shares of the entertainment company had lost 11.57% in the past month. In that same time, the Consumer Discretionary sector lost 3.05%, while the S&P 500 lost 2.59%.

Investors will be hoping for strength from Walt Disney as it approaches its next earnings release. On that day, Walt Disney is projected to report earnings of $0.78 per share, which would represent a year-over-year decline of 26.42%. Meanwhile, our latest consensus estimate is calling for revenue of $23.2 billion, up 6.33% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.05 per share and revenue of $90.76 billion, which would represent changes of +14.73% and +9.72%, respectively, from the prior year.

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. 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, 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. Within the past 30 days, our consensus EPS projection has moved 2.64% lower. Walt Disney is currently sporting a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Walt Disney has a Forward P/E ratio of 21.51 right now. Its industry sports an average Forward P/E of 21.72, so we one might conclude that Walt Disney is trading at a discount comparatively.

Investors should also note that DIS has a PEG ratio of 1.75 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. The Media Conglomerates was holding an average PEG ratio of 0.97 at yesterday's closing price.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% 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.

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


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