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Walt Disney (DIS) Outpaces Stock Market Gains: What You Should Know

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Walt Disney (DIS - Free Report) closed at $100.30 in the latest trading session, marking a +0.4% move from the prior day. This move outpaced the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.92%.

Heading into today, shares of the entertainment company had gained 7.19% over the past month, outpacing the Consumer Discretionary sector's gain of 5.57% and the S&P 500's gain of 5.67% in that time.

Wall Street will be looking for positivity from Walt Disney as it approaches its next earnings report date. This is expected to be May 10, 2023. The company is expected to report EPS of $0.89, down 17.59% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.07 billion, up 14.66% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.98 per share and revenue of $90.25 billion. These totals would mark changes of +12.75% and +9.1%, respectively, from last year.

Any recent changes to analyst estimates for Walt Disney should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. Walt Disney is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Walt Disney is currently trading at a Forward P/E ratio of 25.13. This valuation marks a discount compared to its industry's average Forward P/E of 29.39.

Investors should also note that DIS has a PEG ratio of 2.12 right now. 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. DIS's industry had an average PEG ratio of 2.12 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 75, which puts it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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