Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Walt Disney (DIS - Free Report) closed at $99.91, marking a +0.51% move from the previous day. This move outpaced the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 1.14%, and the tech-heavy Nasdaq gained 1.39%.

Coming into today, shares of the entertainment company had gained 15.88% in the past month. In that same time, the Consumer Discretionary sector gained 11.38%, while the S&P 500 gained 4.01%.

Wall Street will be looking for positivity from Walt Disney as it approaches its next earnings report date. This is expected to be February 8, 2023. The company is expected to report EPS of $0.75, down 29.25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $23.28 billion, up 6.71% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.04 per share and revenue of $90.79 billion, which would represent changes of +14.45% and +9.76%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Walt Disney. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 0.74% lower. Walt Disney is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, Walt Disney is currently trading at a Forward P/E ratio of 24.59. For comparison, its industry has an average Forward P/E of 21.02, which means Walt Disney is trading at a premium to the group.

We can also see that DIS currently has a PEG ratio of 2.04. 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 1.25 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 219, which puts it in the bottom 14% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Walt Disney Company (DIS) - free report >>

Published in