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

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Walt Disney (DIS - Free Report) closed at $101.08 in the latest trading session, marking a +1.51% move from the prior day. This change outpaced the S&P 500's 0.16% loss on the day. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq lost 0.33%.

Prior to today's trading, shares of the entertainment company had lost 4.57% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 15.25% and the S&P 500's loss of 10.5% in that time.

Investors will be hoping for strength from DIS as it approaches its next earnings release. On that day, DIS is projected to report earnings of $0.83 per share, which would represent a year-over-year decline of 48.45%. Our most recent consensus estimate is calling for quarterly revenue of $18.03 billion, up 20.86% from the year-ago period.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $3.31 per share and revenue of $74.07 billion. These results would represent year-over-year changes of -42.63% and +6.47%, respectively.

Investors should also note any recent changes to analyst estimates for DIS. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 39.41% lower within the past month. DIS is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, DIS currently has a Forward P/E ratio of 30.07. For comparison, its industry has an average Forward P/E of 20.68, which means DIS is trading at a premium to the group.

We can also see that DIS currently has a PEG ratio of 5.9. 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 5.9 at yesterday's closing price.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 31% 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.

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


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