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Walt Disney (DIS) Exceeds Market Returns: Some Facts to Consider

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The most recent trading session ended with Walt Disney (DIS - Free Report) standing at $85.71, reflecting a +1.61% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 1.06% for the day. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 1.2%.

The entertainment company's stock has dropped by 1.44% in the past month, exceeding the Consumer Discretionary sector's loss of 3.55% and the S&P 500's loss of 3%.

Analysts and investors alike will be keeping a close eye on the performance of Walt Disney in its upcoming earnings disclosure. The company's earnings report is set to go public on November 8, 2023. In that report, analysts expect Walt Disney to post earnings of $0.71 per share. This would mark year-over-year growth of 136.67%. In the meantime, our current consensus estimate forecasts the revenue to be $21.32 billion, indicating a 5.78% growth compared to the corresponding quarter of the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Walt Disney. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.2% lower. At present, Walt Disney boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Walt Disney is currently exchanging hands at a Forward P/E ratio of 17.06. This expresses a discount compared to the average Forward P/E of 22.86 of its industry.

We can also see that DIS currently has a PEG ratio of 1.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Media Conglomerates stocks are, on average, holding a PEG ratio of 1.37 based on yesterday's closing prices.

The Media Conglomerates industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 222, positioning it in the bottom 12% 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.

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


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