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

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In the latest trading session, Walt Disney (DIS - Free Report) closed at $144.69, marking a -1.49% move from the previous day. This move lagged the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.34%, while the tech-heavy Nasdaq added 0.23%.

Prior to today's trading, shares of the entertainment company had lost 0.01% over the past month. This has lagged the Consumer Discretionary sector's gain of 5.91% and the S&P 500's gain of 3.81% in that time.

DIS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.48, down 19.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $21.14 billion, up 38.15% from the year-ago period.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $5.36 per share and revenue of $81.50 billion. These results would represent year-over-year changes of -7.11% and +17.14%, respectively.

Investors might also notice recent changes to analyst estimates for DIS. These recent revisions tend to reflect the evolving nature of short-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. Over the past month, the Zacks Consensus EPS estimate has moved 4.64% lower. DIS is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that DIS has a Forward P/E ratio of 27.43 right now. For comparison, its industry has an average Forward P/E of 19.14, which means DIS is trading at a premium to the group.

It is also worth noting that DIS currently has a PEG ratio of 5.76. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Media Conglomerates industry currently had an average PEG ratio of 5.76 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 98, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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