In the latest trading session, Walt Disney (DIS) closed at $110.80, marking a -0.67% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 1.07%. At the same time, the Dow lost 0.97%, and the tech-heavy Nasdaq lost 1.19%.
Coming into today, shares of the entertainment company had lost 5.04% in the past month. In that same time, the Consumer Discretionary sector lost 1.28%, while the S&P 500 lost 0.36%.
The upcoming earnings release of Walt Disney will be of great interest to investors. The company is expected to report EPS of $1.45, up 18.85% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $24.7 billion, indicating a 4.87% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.41 per share and revenue of $94.94 billion, indicating changes of +8.85% and +3.91%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Walt Disney. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.61% higher. Walt Disney presently features a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Walt Disney has a Forward P/E ratio of 20.61 right now. Its industry sports an average Forward P/E of 20.98, so 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. 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 industry currently had an average PEG ratio of 2.52 as of yesterday's close.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 80, finds itself in the top 32% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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