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

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In the latest trading session, Walt Disney (DIS - Free Report) closed at $99.68, marking a +0.11% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 4.87%.

Coming into today, shares of the entertainment company had gained 5.84% in the past month. In that same time, the Consumer Discretionary sector gained 2.89%, while the S&P 500 gained 3.31%.

Walt Disney will be looking to display strength as it nears its next earnings release, which is expected to be May 10, 2023. On that day, Walt Disney is projected to report earnings of $0.89 per share, which would represent a year-over-year decline of 17.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.78 billion, up 13.16% from the year-ago period.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $4.01 per share and revenue of $89.8 billion. These results would represent year-over-year changes of +13.6% and +8.56%, respectively.

Investors should also note any recent changes to analyst estimates for Walt Disney. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 1.07% higher within the past month. Walt Disney is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Walt Disney is holding a Forward P/E ratio of 24.81. Its industry sports an average Forward P/E of 25.51, so we one might conclude that Walt Disney is trading at a discount comparatively.

It is also worth noting that DIS currently has a PEG ratio of 2.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Media Conglomerates was holding an average PEG ratio of 2.09 at yesterday's closing price.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 114, which puts it in the top 46% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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