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Walt Disney (DIS) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest market close, Walt Disney (DIS - Free Report) reached $94.15, with a +0.11% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.01%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.08%.

Heading into today, shares of the entertainment company had gained 5.52% over the past month, outpacing the Consumer Discretionary sector's gain of 3.93% and the S&P 500's gain of 1.21% in that time.

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 per share (EPS) are projected to be $1.09, reflecting a 32.93% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.5 billion, up 5.92% from the year-ago period.

It is also important to note the 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.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. Currently, Walt Disney is carrying a Zacks Rank of #4 (Sell).

From a valuation perspective, Walt Disney is currently exchanging hands at a Forward P/E ratio of 18.42. This signifies a premium in comparison to the average Forward P/E of 17.3 for its industry.

One should further note that DIS currently holds a PEG ratio of 1.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Media Conglomerates industry had an average PEG ratio of 1.97.

The Media Conglomerates industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 65, positioning it in the top 26% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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